Looking for CPA

I'm checking with a CPA that I know if he has the expertise you're looking for. I'll let you know..

Rey, check your private messages. I just sent you the details of the CPA I know.

Thanks, I did receive the information.

Anybody else has a favorite CPA?
I like to check with at least two of them, taxes are too important not to get a second opinion.

Hi Gary, 

Can you also send the CPA information to me as well?

Thank you, 

Sherry & Eric
The Grand Adventure

I am a CPA based in Puerto Rico focused on tax planning. For the past 3 years doing Act 22 engagements. If you have a specific question, feel free to email me or send me a private message.

If you're looking for Act 22 information, read this post: http://www.portocapital.com/act-22-indi … erto-rico/ 

If you're looking to establish an export services business (Act 20), this one will provide the basic information: http://www.portocapital.com/act-20-expo … erto-rico/

And if anyone has a general question that wouldn't mind posting here, I am more than glad to post general responses here.

Please PM me the link and how to contact you.
I will be in PR July 11 thru 19 and want to get some advice on the following areas:
1) Determine if I will have to pay Federal Taxes on Social Security benefits from the second year in the island on?
2) Determine if I need to pay Federal taxes on distributions I intend to get from my current IRA.
3) Estimate my taxes given the numbers I provide for future SSN and IRA incomes.
4) How do I fit in the Act 22, how to go about it, do I have to move my money from my IRA, do I have to invest in PR companies?
5) DO I have to move my money to PR in order to take advantage of Act 22 and if so, how to avoid a big hit of 28% or more from Uncle Sam?
6) House sale in USA and purchase of home in PR how that affect my taxes?

I like to make an appointment with you so send me your contact info.
Thanks

Yeah, we have a resident CPA aboard!  Welcome to the forum, Portocapital!

1. An analysis of your particular situation must be done, in order to determine these amounts.
2. US-based IRA will be taxed at the Federal level before transferring to Puerto Rico.
3. An analysis of your particular situation must be done, in order to determine these amounts.
4. Act 22 provides for a 0% tax rate in all passive income. Earned income (salary, wages, tips, etc.) will be taxed as ordinary income at the ordinary rate. In summary, money from dividends, interests, and rent from Puerto Rico properties will be taxed at 0%. (Rents from other jurisdictions will be taxed at 0% in your Puerto Rico tax return, but since real estate is sourced at the location of the property, the taxpayer will be taxed at the location of the property).
5. Any post-tax investments can be transferred to Puerto Rico. Any built-in (unrealized) gains will be taxed once realized (sold), but at the amount of built-in gain of the move. In other words, you invested $1,000 in 2005. Today you move and it is worth $2,000, but you sell it in 2020 for $3,500. You will pay taxes on the $1,000 ($2,000 value at the time of the move, less your basis in the investment, $1,000). You will not pay taxes on the $1,500, since this qualifies under the Act 22 tax decree.
6. You will pay taxes if you have a gain the sale of the house in the US. You cannot do a rollover, as allowed in the US, if you buy a house within a certain timeframe.

Bottom line, fot tax purposes you're technically moving out of the country. The IRS wants their "fair share" before you leave. That said, once you move here, if you have passive income, you will enjoy certain benefits.

Please note that Act 22 tax decree holders will have to file annual reports every year to the Department of Economic Development and Commerce, stating their financial status. This is required under law, in order to enjoy the benefits.

Please find the links approved with the blog admin in the previous post.

Please note that the information provided in this post is for informational purposes. Every taxpayer is particular and because of that a CPA, tax attorney or tax professional must perform a complete analysis of the taxpayer's particular situation to determine their tax liability.

Great stuff, portocapital.

Great stuff, portocapital. I do international tax for a financial instituition. However, besides when offshore trust taxation, Non-Resident Alien ("NRA") Tax, FATCA, UK CDOT (the UK's version of FATCA), and the OECD' s Common Reporting Standard ("CRS") may impact an individual, I don't do individual tax. So it's great to have you on the forum. Welcome.

Thank you for all that information!

Hi Portocapital,

That is quite a mountain of information. Thanks

I was wondering if you can send me your contact information so I can make an appointment when I am in PR to go over each of those. I am afraid I do not know all the legal lingo.

I will be in PR July 11 thru 19, send me your info.