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Puerto Rico would avoid federal taxes. But I don't think the OP should be making this choice based on taxes.
by garmaine 6y ago
Puerto Rico would avoid federal taxes.
But I don't think the OP should be making this choice based on taxes.
- emteycz 6y agoA citizen of the US can't avoid federal taxes anywhere
- wheresmycraisin 6y agoAssuming you're not working a multi national corp that has branches in the US (and therefore reports to the irs), I can't imagine hiding income abroad is all that difficult with a few shell LLC's and trusts.
- garmaine 6y agoThat's evading taxes, not avoiding taxes (legal distinction).
- garmaine 6y agoNot true! Google "puerto rico federal income tax" if you don't believe me. https://www.forbes.com/sites/robertwood/2019/09/09/move-to-puerto-rico-slash-your-taxes-to-zero-not-exactly/ https://www.forbes.com/sites/robertwood/2019/09/09/move-to-p... (Despite saying "not exactly" in the title, it is in fact exactly that. Read the details. PR residents don't pay federal income tax. There's just some caveats if you're trying to move there as a tax dodge.)
- emteycz 6y agoI thought that applies only to non-US citizen Puerto Rico residents. Seems like you're right, thanks for correction!
- garmaine 6y agoWell Puerto Rican born residents are US citizens. The IRS makes it understandably difficult to change your residence to PR as a tax dodge though.
- dhruvkar 6y agoOnly if your source of income is from Puerto Rico. https://www.irs.gov/taxtopics/tc901 https://www.irs.gov/taxtopics/tc901 >> If you're a bona fide resident of Puerto Rico during the entire tax year, you generally aren't required to file a U.S. federal income tax return if your only income is from sources within Puerto Rico.
- GoldenMonkey 6y agoSure they can. The first $107,600 of earnings, can be excluded from Federal Income Taxes. If you live in a foreign country. Look up the foreign earned income exclusion.