Master the Act 60 Bona Fide Residency Test

The cornerstone of your Act 60 status is proving you are a bona fide resident of Puerto Rico. This isn't a simple declaration; it's a three-part test rigorously enforced by the IRS. The test includes: 1) the Presence Test, 2) the Tax Home Test, and 3) the Closer Connection Test. Failing any one of these can jeopardize your tax benefits. Our AI-driven platform meticulously examines your documentation and circumstances against each of these pillars. We cross-reference your travel records, financial statements, and personal ties to build an unassailable case for your residency, ensuring you're not just compliant, but demonstrably so. Traditional CPA firms, often charging between $5,000 and $25,000, may overlook the nuances that our AI, trained on thousands of cases, is designed to catch.

Many decree holders mistakenly believe that spending 183 days in Puerto Rico automatically satisfies the Presence Test. While the 183-day rule is a key component, the IRS looks for a consistent and genuine presence. This includes analyzing your travel patterns for extended absences that might suggest a primary residence elsewhere. Our system flags any travel that could raise red flags, ensuring your time in Puerto Rico is not just counted, but also qualitatively defensible. We provide a detailed analysis of your days on the island, comparing them against the stringent requirements of IRC §933 and relevant GAO reports like GAO-26-107225, giving you the confidence that your physical presence is beyond question.

The Tax Home and Closer Connection tests are more subjective and therefore require a more sophisticated analysis. Your tax home is your principal place of business, and it must be in Puerto Rico. The Closer Connection test examines where you have stronger personal and economic ties. Our AI evaluates a wide range of factors, including the location of your family, personal belongings, banking relationships, and social affiliations. We identify potential weaknesses in your connection to Puerto Rico and provide actionable recommendations to strengthen them. This proactive approach helps you build a robust residency profile that can withstand the deepest scrutiny, a level of detail often missed in a standard review.