I have a client in my area interested in selling one of his properties in the Chicago area and buying a home in Mexico. Does anybody know the tax ramifications or if Mexico allows something similar to a 1031? Thanks!

John

Where in Mexico is he looking at purchasing?

There is nothing similar to a 1031 as far as I know.

If he is interested in a beach community he cannot legally purchase property. Within 10 miles of coastline foreigners cannot own property - so he will have to find an intermediary to hold the title for him, many banks and companies provide this service. Try calling an agent where he is interested in moving to find out more information. There are many C21, Prudential and Remax offices in Mexico (I am guilty of stopping into them every time we're in a new part of Mexico to find a good place to eat )