Why does the U.S. tax code contain a special encouragement for our taxpayers to transfer money to Mexico?  Has consideration been given to using this provision as a bargaining chip in connection with our trade and immigration negotiations with Mexico? Specifically, the Code creates a special provision with respect to cash transfers to residents of Mexico (with the same applicable to Canada) that are not available for transfers of funds to relatives living in any other country outside the U.S.  According to IRS Publication 501, Table 5 on page 12, the (U.S. taxpayer's) eligible relatives include: - Your child, stepchild, foster child, or a de­scendant of any of them (for example, your grandchild). (A legally adopted child is considered your child.) - Your brother, sister, half brother, half sis­ter, stepbrother, or stepsister. - Your father, mother, grandparent, or other direct ancestor, but not foster parent. Your stepfather or stepmother. -...(Read Full Post)