LaPaz Blog

Paradise in La Paz

Hurricane Rick Hurling Toward Baja

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While my beloved wife, Linda, is not thrilled that the strongest Mexican hurricane on record (1997) is named after her, we are praying that Hurricane Rick does not push past second place to claim the crown.

Hurricane Rick is barreling north along the Pacific coast of Mexico, picking up speed and girth over the warm water. Forecasters predict Rick will become a Category 5 hurricane, but expect it to fizzle to a Category 1 hurricane before hitting land.

That will be a blessing. Los Cabos and La Paz were spared major damage from the recent Hurricane Jimena, but towns to the north in Baja suffered major damage. The recovery process will be long and difficult, and these suffering people do not need to go through it again already.

We fly to La Paz in less than two weeks. We’ll know the outcome of Hurricane Rick  by then, so I’ll be able to report the news from the ground.

Hopefully the internet will be connected in our house by the time we get there!

Baggage Carry-on At La Paz, Mexico Airport

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WARNING!  Pack your carry-on bags prudently the next time you depart from Mexico!

If anyone knows specifics of a new carry-on policy in Mexico, I’d love to hear them. For now I can only share my experience departing from the La Paz International airport two weeks ago. It happened quickly and airport staff was not long on details.

The usual bag inspection procedure in Mexico involves hand-inspecting all checked luggage prior to checking in.  Carry-ons are X-rayed at the security checkpoint, then hand inspected prior to boarding.

On this trip I had no checked luggage – only a camera bag as my “personal item” and a 10 x 18 inch carry-on with wheels that easily fits in the overhead of the small jets flying out of La Paz. When the inspector grabbed my roller prior to checking in, I informed him it was carry-on but he insisted on hand inspecting.  

When he finished inspecting the bag,  I tried to retrieve it but he would not let me touch it. He carried it over to the counter, just as though it were checked luggage. The inspector pointed to a sign that said something about new carryon policies.  He said it would be gate checked, and available immediately upon arrival in Los Angeles. “Period. End of conversation. Next…”

There was little I could do without creating a scene. You can imagine my relief to find the large sum of cash and prescription medication were still in the bag when I picked it up at LAX.

Mexican authorities may be trying to cut down on the hand inspections conducted at the gate on all carry-on bags. What I don’t know is…

… whether this policy is only for Alaska Airline flights because  people try to take everything in carry-ons after Alaska’s new policy to charge for checked bags, or

… whether they were only confiscating carry-ons with wheels, or

… whether this policy is only in La Paz or all of Mexico, or

… whether it is permanent or one of Mexico’s temporary security checks.

Until we know more, be very careful to keep cash, valuables, medication, cameras, the book you plan to read, etc. in your clothing or a very small bag that you can be sure of carrying on the plane as your “personal item.”

Extension IRS Voluntary Offshore Disclosure

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Today one of our accountants announced that IRS extended the deadline for the  previously reported Voluntary Offshore Disclosure from September 23, 2009 to October 15, 2009, in order to “provide relief for those taxpayers who had intended to come forward prior to the deadline, but faced logistical and administrative challenges in meeting it.”

The extension will allow tax advisers and attorneys the necessary time to interview and advise their backlog of taxpayers with hidden offshore accounts, and prepare the necessary paperwork to qualify for the special penalty provisions.

So if you’ve been working in Mexico without reporting your income, or have unreported bank accounts, or did not file your forms relating to a Fideicomiso or other trust, you have a few more days to get that done.

Exchanging dollars to pesos

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Exchanging money in La Paz is more challenging these days. The banks I normally use will no longer exchange U.S. dollars for pesos. We have to use a cambio, or money changing service.

I am told this is a government regulation to stem the flow of drug money, but cannot confirm it. It seems to happen periodically. One time the banks can’t/won’t exchange my dollars, the next time they will.

Cambios collect a commission for their service, so you are not getting the best rate on your exchange. Today they are exchanging 12.5 pesos per U.S. dollar, while the bank rate is 13.28. If you exchange, say, $1000.00 U.S.,  the difference is over $60 US.

It may be worth your while to check with your local bank a few days before your trip to La Paz. Our banker at Chase said they need 48 hours to order pesos and will exchange at the bank rate.