Tax Day Blues? Move to Puerto Rico for Epic IRS Loophole
Tax day got you down? Consider moving to Puerto Rico to take advantage of an epic income tax loophole. | Source: Shutterstock
By CCN: Tax season has once again come and (almost) gone, and so have many hard-earned dollars that once lined your wallet and bank account. But just because youve been paying federal taxes for as long as youve been earning an income doesnt mean you have to keep doing so.
A loophole in the federal tax code allows citizens of Puerto Rico who qualify for Act 22 to pay as little as 0% federal taxes on capital gains and earned income. But for crypto investors, the tax incentives Puerto Rico offers are only the tip of the iceberg. Pristine beaches, warm weather year-round, and access to some of blockchains most keyed-in figures – like bitcoin billionaire Brock Pierce – are among the others.
Here are three reasons that you should move to Puerto Rico – especially if youre a crypto investor.
1. Puerto Rico Incentivizes High Earners with 0% Tax
If you qualify for the unique tax benefits that Puerto Rico offers, you could save up to 100% on federal income taxes. To meet the requirements, one must:
- Become a bonafide resident of Puerto Rico (spending a minimum of 183 days per year on the island).
- Pass a criminal background check.
- File the appropriate applications with the IRS. All-in filing costs range from $5,000 to $12,000.
- Make a $5,000 annual donation to an approved local nonprofit.
If the potential to save up to 100% of the federal income tax you pay each year isnt enough to entice you, theres more.
Now is an ideal time for crypto traders and blockchain enthusiasts to relocate to the island. Thats because Puerto Rico is quickly becoming a technology hub, and many analysts believe that cryptocurrencies are just getting started on another epic bull run.
During the largest bull run in cryptocurrency history (late 2017 – Jan 18), blockchain evangelist and Bitcoin billionaire Brock Pierce moved to Puerto Rico to take advantage of the tax benefits and to help Puerto Rico rebuild after Hurricane Maria devastated the islands infrastructure. Many crypto investors and developers followed.
And do you know what being around people who know the news before journalists break it leads to? Thats right: information, knowledge, and power.
Brock Pierce Talks Puerto Rico
Brock Pierce is one of the most polarizing names in blockchain. Whether you admire his efforts or judge him harshly for his outlandish style and unnerving resistance to strictures, you have ...Read full story on CCN