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Hello All,

I am considering setting up an individual (taxable) brokerage account in Mexico to buy some equities on the mexican exchange and also purchase a peso denominated CD possibly, however I am concerned about the tax treatment and accounting issues:

1. The application does not require a SSN or Tax ID so obviously I don't think they report anything to the IRS.

2. Are capital gains , dividends, and interest income all treated the same as a regular domestic account ?

3. I normally use Turbo tax so if these sources of income need to be reported differently or with additional paperwork, will the turbo tax package accomodate this ?

4. They charge quite a few fees that are not customary in the US such as application fee, fee to setup account ect. Can these be added to my return as investment expenses ?

5. Last and most importantly, statisically am I more likely to be audited if I have a foreign brokerage account ? I plan on spending 12mo abroad in 2006 so an IRS audit would be especially unpleasant under the circumstances.

Thank you kindly in advance folks.
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