We’ve all heard it – move to Puerto Rico and you’ll avoid taxes! But what does that really involve? Under US tax law, it involves quite a lot of major life changes. Under Section 933 of the Internal Revenue Code, a bona fide resident of Puerto Rico for the entire taxable year is not subject to taxes on income derived from sources within Puerto Rico. Let’s discuss this two-part requirement in more depth. The first requirement is bona fide residency in Puerto Rico. To be a bona

Small business owners have been burdened by the pandemic in ways that were not originally contemplated. It’s one thing to have to close their doors, but so many residual financial burdens are still being felt as Covid-19 remains present. One such burden is the high amount of sick and family leave employees affected by Covid-19 are having to take this year. The American Rescue Plan Act of 2021 was passed to ameliorate the economic impacts of the Covid-19 pandemic. Specific pro

While the advance payments will begin to be disbursed automatically, qualifying families can opt-out of them and receive the entire tax credit as a lump sum when filing their 2021 taxes. If opting out, the entire $3,000-$3,600 credit will be received with their 2021 tax return, instead of receiving 50% of the entire credit amount in advance monthly installments beginning July 15 and the remaining 50% as a lump sum with their tax return. Opting out doesn’t change the amount of

The IRS will begin issuing monthly payments to certain households under the Advance Child Tax Credit. The payments will begin to be disbursed on July 15, and the IRS has already begun sending letters of notice to qualifying families. Under the new 2021 Child Tax Credit, qualifying households will receive a tax credit that they will be able to claim on their 2021 tax returns. The total amount of the Child Tax Credit is $3,600 per qualifying child under age 5 and $3,000 per qua

Although it is an unpleasant thought, suppose your family member has just been diagnosed with a terminal illness and will not live another year. As they prepare for their soon passing, they will make efforts to get their estate in order, which may include seeking opportunities to reduce the tax impacts of their death. In an effort to reduce the amount of estate taxes that will have to be paid, suppose they gift you their vacation home a few months before they pass away, remov

When a new employee is hired, they will learn best business practices from their employer. Employers invest time and money from their businesses into training employees. Many employers fear that employees will take those new skills and branch out on their own, creating competition for the same employers that trained them. Non-compete contracts are designed to reduce this risk. They set restrictions on a former employee’s ability to engage in the same business practices as the