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In order to be exempt from payment of income tax on income derived from the sale, transfer or otherwise disposal of a house (i.e. capital gains tax)...

...must said house (address) coincide with the proof of address and the address on the voter registration card?  On the basis of what grounds?

In order to be exempt from income tax (Impuesto Sobre la Renta, or “ISR” in Spanish) on income derived from the sale, transfer or otherwise disposal or real property, the person transferring ownership (taxpayer) must accredit to the notary public formalizing the operation that the real property which is the object of the operation is, in fact, the residence of the taxpayer, submitting as proof any of the evidentiary documents mentioned below, provided that the address set forth in said documentation coincides with the address of the real property sold, transferred or otherwise disposed of:

1. Voter identification card, issued by the Federal Electoral Institute; or

2. Proof of payments made for electricity or landline telephone services contracted; or

3. Account statements provided by those institutions that make up the financial system (banks), commercial establishments, or non-bank credit cards (Sears, Liverpool, etc.).

The documentation referred to in the foregoing sections should be in the name of the taxpayer, his/her spouse or his or her direct ancestors or descendants (parents, grandparents, children, grandchildren, etc.).

In other words, only one of the documents referred to above in numerals 1 -3 is required.

The grounds for exemption from income tax on the income derived from the sale, transfer or otherwise disposal of real property (capital gains tax) are found in: Article 109, Section XV, subparagraph a) of the Income Tax Law (Ley del Impuesto Sobre la Renta, or “LISR” in Spanish), Articles 129 and 130 of the Regulation for the LISR (Reglamento de la Ley del Impuesto Sobre la Renta), Rule I.3.10.7. and Transitory Article Seventh of the Fiscal Miscellaneous Resolution for 2012.

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