Miami to Puerto Rico Tax Guide for Act 60 | Act60Review.com

From Florida's No-Tax Advantage to Puerto Rico's Act 60 Benefits

Moving from Florida to Puerto Rico presents a unique tax planning opportunity. While Florida boasts no state income tax, relocating to Puerto Rico under Act 60 unlocks even more significant advantages, particularly for investment and business income. The key is establishing bona fide residency in Puerto Rico, which allows you to source certain income to the island and benefit from its tax incentives. Under IRC Section 933, bona fide residents of Puerto Rico can exclude Puerto Rico-sourced income from their U.S. income tax returns. Our comprehensive review process is designed to analyze your specific situation and ensure you meet all the requirements to maximize these benefits, identifying potential pitfalls before they become problems.

Maximizing Your Business Income Benefits under Act 60

For businesses, the Act 60 Export Services incentive offers a remarkably low 4% corporate tax rate on eligible service income. This is a substantial reduction from the federal corporate tax rate. To qualify, your business must perform services in Puerto Rico for customers outside of Puerto Rico. The rules for sourcing this income are complex and a common area for errors. Traditional CPA firms, while knowledgeable, may not have the specialized tools to analyze the nuances of these sourcing rules at scale. Our AI-powered platform, however, reviews over 200 compliance rules, including the intricate details of income sourcing, to provide a thorough, CPA-verified analysis of your business income structure.

Eliminating Capital Gains Tax: A Deep Dive for Miami Investors

The Act 60 Individual Resident Investor incentive provides a 0% tax on Puerto Rico-sourced capital gains for bona fide residents. This is a powerful tool for investors, especially those accustomed to Miami's dynamic market. A critical consideration is the treatment of pre-move appreciation on assets. Gains accrued before establishing residency in Puerto Rico are subject to U.S. federal taxes, while gains accrued after are tax-free in Puerto Rico. A recent GAO report (GAO-26-107225) highlighted the complexities and compliance risks associated with Act 60. Our review process meticulously examines your asset portfolio and transaction history to ensure proper allocation of gains, helping you navigate this complex area with confidence.

Frequently Asked Questions

Do I still have to file a US federal tax return after moving to Puerto Rico?

Yes, as a U.S. citizen, you must still file a U.S. federal tax return. However, as a bona fide resident of Puerto Rico, you can exclude Puerto Rico-sourced income under IRC Section 933. Our review can help identify which income qualifies for this exclusion and ensure your filing is accurate.

How are my existing investments treated for capital gains purposes when I move?

Capital gains are sourced based on when they accrue. Gains on securities that accrued before you became a bona fide resident of Puerto Rico are subject to U.S. tax, even if you sell them after you move. Gains that accrue after you become a resident are generally considered Puerto Rico-sourced and are eligible for the 0% tax rate. Our analysis is designed to catch potential errors in how these gains are reported.

What makes Act60Review.com different from a traditional CPA?

While traditional CPAs provide valuable services, they often charge between $5,000 and $25,000 for an Act 60 review and may not have the specialized, data-driven tools to catch every potential issue. Our AI-powered platform reviews over 200 compliance rules and is CPA-verified, offering a more thorough and cost-effective second opinion on your tax strategy.

Ready to Check Your Return?

Get a comprehensive AI review of your Puerto Rico tax return in under 24 hours. Catch errors before the IRS does.

Get Your Review

The Definitive Guide to Tax Implications: Moving from Miami to Puerto Rico with Act 60