LaPaz Blog

Paradise in La Paz

Hurricane Rick Slows Down

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Hurricane Rick did reach Category 5, peaking at 180 mph. Rick’s track still threatens to stir up Cabo San Lucas, disrupting a major sport fishing tournament in the process. However, Rick is slowing down as predicted.

By the time we read one prediction, a news agency has posted a different one. Suffice it to say, they cannot predict exactly where Hurricane Rick will touch land but the general consensus is wind force will be somewhere between 80 and 110 mph.

That’s still a fearsome gale, if you’re caught in it. We endured 100 mph winds during a freak hurricane in Washington State three Decembers ago. Power was out all over the region ranging from a few days to three weeks, with much property damage and several deaths. Crews were brought from Canada and other states to help with cleanup and repair.

There are fewer trees to land on power lines in Baja, but flood from the rains that come with hurricanes causes major damage after the winds have passed. Concentrated water gushes down the valleys from mountain peaks into towns and cities such as Los Cabos and La Paz. Streets become rivers.

By tomrrow night we should know where Hurricane Rick has landed and how residents and property will fare. Prayers can only help!

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!

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.