What is manifesting?
Manifesting is simply recording the amount you spent on your construction, or remodel, in order to add this to your cost basis. Adding to your cost basis is the key to reducing your Capital Gains Tax. Proper documentation and Manifesting Your Construction is a vital part of building your new home. WHY DO I NEED TO MANIFEST MY CONSRTUCTION? When you sell your home, the Manifested cost plus the cost of your lot stated in your Trust (Title), will be used to determine the basis for Capital Gains tax. If you have not Manifested Your Construction, Mexican Tax Law will not recognize your construction costs and you will not be able to use them as a deductible expense. All your receipts, cancelled checks and bank statements will not help, unless you have completed your Manifestation. Before Your Begin Construction… Decide how to structure your financial arrangements with your contractor. The two main choices are Cost Plus and a Fixed Bid. COST PLUS With Cost Plus, you pay the contractor for t
