PR Heath ins---IRS penalty

PattiAnn wrote:

If I own property in pr and buy my health care in pr does it fill full my ins requirements regarding us tax penalties.
I also own property in CT

Just to beat a dead horse here, if you are deemed a "tax resident" of Connecticut you are subject to ACA and required to have insurance compliant with the ACA minimums.  Personally, I would believe after you examine the minimum requirements of an ACA policy, you will likely be able to check the box that you have been covered throughout the year (if you in fact were).

But, are you sure you're not a "tax resident" of PR?  Owning property in Connecticut would not in and of itself likely disqualify you - depends on if it is still your "home."   Basically, if your "home" really is in PR and you've been in PR at least 183 days, etc. to heck with Connecticut!

This gets wordy, but here's best test I've seen from the IRS on what is required to gain tax residency in PR:

IRS Publications 1321 and 570 define a resident of Puerto Rico as someone who:

-   Meets the presence test by spending at least 183 days a year in Puerto Rico or qualifying under one of the other tests,
-    Does not have a tax home outside of Puerto Rico, and
-    Does not have a closer connection to the United States or to a foreign country than to Puerto Rico.

The first of these criteria for being considered a resident of Puerto Rico for US tax purposes is known as the physical presence test. The easiest way to satisfy this test by spending at least 183 days a calendar year on the island.

If you can't hit 183 days (for example, you are starting your residency in November), then you need to qualify for Puerto Rico residency using the 3 year test. You are a tax resident of Puerto Rico if you spend a minimum of 60 days in Puerto Rico during each tax year and at least 549 days over 3 consecutive years.

Once you establish residency in Puerto Rico, and break ties with the United States, there are other tests you can use to ensure you are classified as a tax resident of Puerto Rico in future years.