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by sokoloff 2642 days ago
Look up Act 20 and Act 22.

It’s not just “take a vacation in PR for 183 days”. You have hoops to jump through and need to actually move there. I think cap gains rate becomes 4% on the PR part, with some amount of apportioning between PR and prior gains.
1 comments
tmp192489 2642 days ago
What kind of hoops? If you're going to do a single transaction for $500k+ that is a huge difference...
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sokoloff 2642 days ago
Seriously, read up on Act 20 and 22 (whichever applies). Don’t take random 2-minute internet blurbs on it. You enter into a contract with Puerto Rico, you move there, you make required donations, comply with the other rules as required.

Set aside several evenings to do the basic reading, then if still interested, engage in a PR-based expert counsel to ensure you both understand and that you do everything correctly.

For me, it would only make sense if the amount in question was mid 7 figures if you’re just doing it for taxes and didn’t otherwise want to live in PR.

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