Amervim Bonano

Tax protection

Act 22 Compliance Checklist: Stay on Track and Protect Your Tax Benefits

Puerto Rico’s Act 22 (now part of Act 60) provides significant tax benefits to Resident Individual Investors. However, these benefits come with strict compliance requirements. Failing to meet these obligations can result in revocation of benefits and financial penalties. Below is a checklist to help ensure you stay in compliance and continue enjoying the benefits of your decree. ✅ Act 22 / Act 60 Compliance Checklist 🗓️ Yearly Compliance Tasks Task Due Date Notes Completed Submit Annual Report to OITE & PR Treasury 30 days after tax filing deadline Required for compliance. Missing this can cause revocation. ☐ Make $5,000 Charitable Contribution to a Puerto Rico Nonprofit Before filing annual report Must be Puerto Rico-based and not controlled by you. Keep receipt as proof. ☐ Maintain Bona Fide Puerto Rico Residency Ongoing (183+ days/year) Track travel days to ensure 183+ days in Puerto Rico yearly. ☐ Report All Required Financial Information Accurately Ongoing Misreporting can result in revocation & penalties. ☐ 📝 One-Time / As-Needed Compliance Tasks Task Due Date Notes Completed File IRS Form 8898 (if previously a U.S. resident) First year only, by U.S. tax deadline Confirms move to Puerto Rico. Missing this may trigger U.S. tax issues. ☐ Notify OITE if Residency Changes Within 30 days of moving If you leave PR, you lose tax benefits. Must send written notice. ☐ Ensure Grant Acceptance is Notarized & Filed 90 days after receiving the decree Failure to do this will make the grant retroactively null & void. ☐ Review Grant Terms & Act 22 Compliance Rules Annually Stay updated on any legal changes affecting your benefits. ☐ ⛔ Red Flags That May Lead to Revocation 📌 Best Practices ✔ Set calendar reminders for key deadlines. 📅✔ Keep records of donations, filings & travel days for audits. 🗂️✔ Consult and reach out to us yearly for updates. 🏛️✔ Double-check that all filings are accurate before submission. ✅ ⚠️ Important Caveat Each Act 22 decree is a separate contract with the government, meaning that specific terms and obligations may vary. Please review your individual decree to ensure full compliance. If you would like us to review your case or prepare a customized compliance plan for you, don’t hesitate to reach out to our office 📞 Contact Us For assistance with Act 22 compliance or to schedule a consultation, feel free to reach out to us: We’re here to help you navigate Act 22 and ensure you remain compliant while maximizing your benefits!

Credito por Trabajo en Puerto Rico

¿Tienes Derecho al Crédito por Trabajo en Puerto Rico? Usa Nuestra Calculadora y Descúbrelo

El Crédito por Trabajo es un incentivo diseñado para ayudar a los trabajadores de ingresos bajos y moderados en Puerto Rico. Este beneficio podría representar un alivio económico importante para muchas familias, pero no todos saben si cualifican o cuánto podrían recibir. Para facilitarte el proceso, hemos creado una calculadora gratuita donde puedes ingresar tu información básica y obtener una estimación de cuánto podrías recibir. 📥 Accesa la calculadora aquí: Calculadora de Crédito por Trabajo 2025 Ingresa tu información a continuación para calcular tu estimado de Crédito por Trabajo: Ingreso Bruto Anual ($): Número de Dependientes: 0123 o más Estado Civil: SolteroCasado (radicando en conjunto) Calcular Crédito Crédito Estimado: $0 Escríbenos por WhatsApp 🔹 ¿Cómo funciona?Solo necesitas ingresar tres datos clave:   ¿Quiénes pueden cualificar? Para recibir el Crédito por Trabajo, debes cumplir ciertos requisitos, como: ✅ Haber trabajado y generado ingresos✅ Ser residente de Puerto Rico durante todo el año contributivo✅ Tener un número de Seguro Social válido✅ No exceder los límites de ingresos establecidos según el número de dependientes Los detalles específicos sobre los límites y fórmulas de cálculo están basados en las guías del Departamento de Hacienda de Puerto Rico. Importante: Disclaimer 💡 Esta calculadora es una herramienta informativa y no sustituye asesoría fiscal profesional.Los resultados que obtengas son solo una estimación y no garantizan la cantidad final de crédito que podrías recibir. Para confirmar tu elegibilidad y monto exacto, te recomendamos consultar con un especialista en contribuciones o verificar con el Departamento de Hacienda de Puerto Rico. No pierdas la oportunidad de verificar si puedes recibir este incentivo. Utiliza la calculadora, ingresa tus datos y descubre si tienes derecho a este beneficio.  ¡Comparte con familiares y amigos que también puedan beneficiarse!  

Act 22 and Act 60 compliance

Have You Checked If Your Act 22 or Act 60 Tax Grant Requires These Key Points?

For investors benefiting from Puerto Rico’s tax incentives under Act 22 or Act 60, compliance with the terms of the grant is crucial to maintaining eligibility for the program’s benefits. While each grant represents a separate contract negotiated individually with the Puerto Rican government, there are common compliance points that appear in many grants. Ensuring adherence to these requirements is vital to avoid penalties or revocation of benefits. Here are some critical points you need to verify regarding your tax grant: 1. Condition for Effectiveness The tax exemption grant under Act 60 will not take effect immediately if the grantee was not a resident of Puerto Rico when the grant was approved. To activate the grant: Implication: Until these steps are completed, the tax benefits cannot be utilized. This ensures that only genuine residents benefit, aligning with the program’s goal of boosting local economic activity. 2. Property Acquisition Requirements Alternative Option: The grantee may purchase land and construct a home within the two-year window. Proof of construction completion must be included in the annual report for the tax year of completion. 3. Annual Filing Requirements Failure to file these reports may result in penalties or grant revocation. 4. Nonprofit Donation Obligations From the second year after the grant becomes effective, grantees must donate at least $10,000 annually to Puerto Rican nonprofits: 5. Capital Gains Tax Treatment 6. Termination of Residency If a grantee ceases to be a resident of Puerto Rico: Important Reminders Staying ahead of these requirements ensures you maximize the benefits of your tax grant while avoiding penalties or revocation. For those considering this opportunity, it’s crucial to be thoroughly informed and prepared to comply with all stipulations to fully benefit from Act 60. Should you require additional guidance or have specific inquiries, seeking tailored professional advice is highly recommended. For further assistance or more information, please feel free to contact us at [email protected] or 787-473-8985. Disclaimer: The information provided herein is for informational purposes only and should not be construed as legal or tax advice.

Act 60 - Youtube

Does My YouTube Channel’s Source of Income Qualify for Act 60 Export of Services?

If you’re a YouTube creator wondering whether your ad revenue can qualify under Puerto Rico’s Act 60 for Export of Services, here’s what you need to know: Understanding Act 60 Act 60 in Puerto Rico was designed to attract businesses by offering significant tax incentives, particularly for those providing services to clients outside of Puerto Rico. The key here is that the income must be from “export services,” meaning services provided to non-residents or entities not located in Puerto Rico. YouTube Ad Revenue as an Export Service Your YouTube channel’s ad revenue could potentially qualify under Act 60 if: How to Qualify Here’s how you might go about qualifying: Why It Qualifies The rationale behind this qualification is: Final Thoughts While your YouTube channel’s ad revenue can indeed qualify for Act 60 benefits, navigating the application and ensuring ongoing compliance requires careful planning and possibly the assistance of a tax advisor familiar with Puerto Rican incentives like us at Bonn LLC. This can be a lucrative strategy if managed correctly, significantly reducing your tax burden and potentially enhancing your income from YouTube activities. For those considering this opportunity, it’s crucial to be thoroughly informed and prepared to comply with all stipulations to fully benefit from Act 60. Should you require additional guidance or have specific inquiries, seeking tailored professional advice is highly recommended. For further assistance or more information, please feel free to contact us at [email protected] or 787-473-8985. Disclaimer: The information provided herein is for informational purposes only and should not be construed as legal or tax advice.

Juan Soto in New York Mets Uniform, Signing his contract

Tax Implications for MLB Players: California, New York, and the Juan Soto Phenomenon

In the world of Major League Baseball (MLB), the geographical location of a player can significantly affect their earnings, not just in terms of salary but in how much of that salary they get to keep after taxes. This post will delve into the tax implications for baseball players, particularly focusing on how contracts in California and New York compare with those in other states, spotlighting the recent record-breaking deal of Juan Soto with the New York Mets. The Tax Landscape for MLB Players Professional athletes, including baseball players, are subject to what’s colloquially known as the “jock tax.” This tax mandates that athletes pay income tax in every state where they perform, based on the proportion of their income earned in that state. Here’s how it impacts players: Why Higher Salaries in California and New York? Despite the high tax rates: Juan Soto’s Case – A Tax and Contract Analysis Juan Soto’s recent contract with the New York Mets sets a new benchmark at $765 million over 15 years, the largest in MLB history: Contrasting Contracts Across States The interplay between where an MLB player signs, the structure of their contract, and state tax laws is complex. Players in California and New York might command higher salaries due to market size and team revenue, but they also face higher taxes. However, strategic contract structuring, like in Juan Soto’s case, can mitigate some of these costs. For teams and players, understanding and navigating these tax implications is crucial in the negotiation and signing of contracts, making the financial aspect of baseball as much a game of numbers as the sport itself.

IRS RED FLAGS

Navigating the IRS Audit Maze: 15 Red Flags to Watch Out For

Filing your taxes is a meticulous process, one where precision not only ensures compliance but also minimizes the risk of an audit. The Internal Revenue Service (IRS) employs various methods to select returns for examination, often focusing on inconsistencies or unusual patterns that could suggest discrepancies or errors. Here’s a detailed look at 15 common red flags that might increase your chances of an IRS audit: 1. Excessive or Unusual Deductions If your deductions seem disproportionately large compared to your income, the IRS might take a closer look. This includes deductions for business expenses, medical expenses, or charitable contributions that don’t align with your reported income or lack sufficient documentation. 2. Large Business Expenses for Schedule C New businesses or those showing minimal profit might raise eyebrows if they claim substantial expenses. The IRS often scrutinizes Schedule C (Profit or Loss from Business) for potential overstatements. 3. High Home Office Deductions The home office deduction is complex due to its specific requirements for space usage and business purpose. Overclaiming this deduction without proper substantiation can lead to scrutiny. 4. Round Numbers Submitting tax figures in round numbers can imply estimation rather than precise calculation. This is particularly true for income, expenses, or deductions where exact amounts are expected. 5. Mismatch Between Reported Income and Lifestyle In today’s digital age, the IRS might compare your lifestyle (visible through social media or financial transactions) with your tax filings. A significant mismatch could invite questions. 6. Failure to Report All Income Every income from 1099s, W-2s, or any third-party reported income must be declared. Omissions here are a clear red flag. 7. Cash Transactions Reporting a high volume of cash income without corresponding bank records or receipts can be suspicious, especially in businesses where cash transactions are common. 8. Lack of Documentation for Charitable Contributions Charitable deductions require substantiation, particularly for large amounts. Lack of receipts or acknowledgment can lead to an audit. 9. Unusual Investments on Schedules B or D If your investment strategies result in losses or gains that don’t follow market trends, or if they’re unusually large, the IRS might investigate. 10. Schedule E Discrepancies Losses from rental properties or other passive activities need to be backed by evidence of active management or operation. Significant losses here without income might prompt review. 11. Claiming Losses from Passive Activities Losses from activities where you’re not materially participating can be flagged if they seem to be used to offset income from other sources. 12. Foreign Accounts or Income With global financial transparency increasing, failing to report foreign income or accounts (FBAR) can result in an IRS audit. 13. Self-Employment Tax Issues Mismatches in the income reported for self-employment taxes versus your income tax can indicate discrepancies in reporting. 14. Substantial Travel or Entertainment Expenses Business-related travel and entertainment expenses should be well-documented. Large or frequent claims without justification can be problematic. 15. Frequent Filing of Amendments While amending returns to correct errors is advisable, doing so frequently might suggest initial carelessness or an attempt to adjust income post-filing. Ensuring Compliance While these red flags do not guarantee an audit, they do increase the likelihood of your return being examined. Here are some tips to stay on the safer side: Navigating tax season can be daunting, but understanding these red flags can help you prepare a return that’s thorough and less likely to pique the interest of the IRS for the wrong reasons. Remember, an audit isn’t always about wrongdoing; sometimes, it’s just about ensuring compliance with tax laws. However, with careful preparation, you can minimize your chances of being audited.

Act 20 and Act 60 Compliance

DIY Audit: A Guide to Keeping Your Act 20 and Act 60 Compliance on Track

If you’re benefiting from Puerto Rico’s Act 20 or Act 60 tax incentives, staying on top of compliance is crucial. Missed deadlines or overlooked requirements can lead to penalties, loss of tax benefits, or even revocation of your grant. Here’s a step-by-step guide to conducting a DIY compliance audit to help you manage Act 20 and Act 60 obligations effectively. Step 1: Verify Your Filing Deadlines To maintain compliance under Act 20 or Act 60, it’s essential to track all filing deadlines, including forms, reports, and declarations. Below is a detailed list of due dates, extensions, and notes to keep you on track: Additional Note: Estimated tax payments are due on the 15th day of the 4th, 6th, 9th, and 12th months of the taxable year. Step 2: Ensure Residency Compliance For individuals receiving Act 20 or Act 60 benefits, maintaining bona fide Puerto Rico residency is crucial. Ensure you meet the following requirements: Potential Risks: Step 3: Check for Business Expansion or Model Changes If your business has expanded, changed its operations, or moved locations, confirm that the new activities are aligned with your original Act 20 or Act 60 decree. If your business model or services no longer match the original decree criteria, a re-evaluation or amendment may be necessary. Also, if your business address has changed, be sure to update it with all relevant agencies, including the IRS, Hacienda, Puerto Rico State Department, Department of Labor, and FINCEN (for the BOI report). This keeps your records accurate and prevents unnecessary compliance issues. Step 4: Prepare for Possible Audits or Compliance Checks Regular audits and compliance checks by the Puerto Rican Department of Treasury or the Department of Economic Development and Commerce (DDEC) are part of the Act 20 and Act 60 oversight. Be prepared to provide: Step 5: Understand the Consequences of Non-Compliance Failure to meet the requirements of Act 20 or Act 60 can lead to serious consequences, such as: Final Thoughts Conducting a DIY audit of your Act 20 or Act 60 compliance is an effective way to stay organized and protect the benefits you have worked hard to achieve. This list can serve as an annual compliance review, helping you confirm that you’re on track with filings, residency requirements, and any operational changes. For additional guidance or support with complex requirements, consulting a professional familiar with Act 20 and Act 60 compliance can provide added peace of mind. For further assistance or information, please contact us at [email protected] or 787-473-8985. Disclaimer:The information provided is for informational purposes only and should not be considered legal or tax advice. Consult with a qualified attorney or tax advisor to discuss your specific situation.

ingresos exentos puerto rico

Fuentes de Ingresos Exentas en Puerto Rico: Guía Completa para Aprovechar las Exenciones

En Puerto Rico, ciertos tipos de ingresos están exentos de impuestos, lo que puede reducir significativamente la carga fiscal de los contribuyentes. Aquí exploramos las principales fuentes de ingresos exentas, los porcentajes de exención aplicables, y los requisitos necesarios para calificar. ¡Sigue leyendo para descubrir cómo puedes beneficiarte! 1. Cuota de Ajuste por Costo de Vida para Empleados del Gobierno de EE. UU. en Puerto Rico 2. Subsidio Federal para Planes de Medicamentos Recetados 3. Ingresos de Corporaciones Especiales Propiedad de Trabajadores 4. Compensación por Desempleo 5. Exención para Servicios Militares Activos en Zonas de Combate 6. Ingresos Devengados en la Serie del Caribe de Béisbol 7. Ingreso por Operaciones de Aseguradores Internacionales 8. Ingresos para Investigación en Instituciones Educativas Conclusión Estas exenciones fiscales están diseñadas para aliviar la carga tributaria de ciertos grupos de contribuyentes y fomentar actividades importantes en Puerto Rico, como la investigación, el empleo de trabajadores y el apoyo a programas sociales. Es recomendable que los contribuyentes consulten con un asesor fiscal para asegurarse de cumplir con todos los requisitos y aprovechar al máximo los beneficios disponibles. Con este conocimiento, puedes reducir tu carga fiscal y, al mismo tiempo, contribuir al desarrollo económico de Puerto Rico. Para asistencia o información adicional, por favor contáctanos en [email protected] (mailto:[email protected]) o al 787-473-8985. Aviso Legal: La información proporcionada es solo para fines informativos y no debe ser considerada como asesoramiento legal o fiscal. Consulta con un abogado o asesor fiscal calificado para discutir tu situación específica.

Bill of Rights Puerto Rico

Understanding Puerto Rico’s Taxpayer Bill of Rights: What Every Taxpayer Should Know

Navigating tax obligations can be complex and sometimes overwhelming. To ensure that all taxpayers in Puerto Rico are treated fairly and with respect, the Department of Hacienda (Puerto Rico’s Treasury Department) has established a Taxpayer Bill of Rights. This document outlines both the rights and protections for taxpayers and the obligations of Hacienda towards them. Here’s a breakdown of key points from the Taxpayer Bill of Rights. Key Taxpayer Rights Every taxpayer in Puerto Rico is entitled to specific protections and considerations when interacting with Hacienda. These rights are designed to foster transparency, fairness, and respectful treatment: Hacienda’s Responsibilities Toward Taxpayers Alongside taxpayer rights, Hacienda has specific obligations to ensure that taxpayer interactions are handled professionally and with respect. Hacienda’s responsibilities include: Important Procedures for Tax Disputes and Adjustments The Taxpayer Bill of Rights also defines key procedures for addressing tax disputes or adjustments, ensuring that taxpayers have a clear path for resolution: The Taxpayer Bill of Rights is a valuable resource for any taxpayer in Puerto Rico, providing assurance that Hacienda will treat them fairly and respectfully. By understanding these rights and Hacienda’s obligations, taxpayers can navigate their tax responsibilities with greater confidence. or further assistance or information, please contact us at [email protected] or 787-473-8985. Disclaimer:The information provided is for informational purposes only and should not be considered legal or tax advice. Consult with a qualified attorney or tax advisor to discuss your specific situation. Resource: https://hacienda.pr.gov/sites/default/files/publicaciones/carta_derechos_al_contribuyente.pdf

Home for sale

How Non-Residents Can Request a Refund of Withheld Taxes on Property Sales in Puerto Rico

Selling property in Puerto Rico as a non-resident can come with some unique tax obligations. One of the most significant is the withholding tax applied to sales of real estate or shares located in Puerto Rico. However, if you meet certain requirements, you may be eligible to request a refund of that withheld tax. Here’s a guide to understand when this applies, the benefits, and the steps for non-residents looking to reclaim withheld taxes. Understanding Puerto Rico’s Withholding Tax for Non-Residents When a non-resident sells property in Puerto Rico, the buyer is typically required to withhold a portion of the sale price as tax. This amount can vary: This withheld amount is then deposited with the Puerto Rico Department of Treasury as a tax on the seller’s potential profit from the sale. However, not every sale results in a profit, and some sellers may have already paid the relevant taxes on the gain. This is where the refund application comes in. Do You Qualify for a Refund? A non-resident seller may qualify for a refund if: Benefits of Applying for a Refund If you meet the criteria, applying for a refund can help you recover the amount withheld during the sale, provided you submit adequate documentation to support your claim. How to Apply: Required Documentation Applying for a refund requires thorough documentation, so it’s essential to organize these key items: Additional Considerations If the property was acquired through inheritance or donation, or if permanent improvements were made, additional documentation may be required. For example: Filing the Application The completed application, along with the required documentation, should be submitted to the Puerto Rico Department of Treasury by the 15th of the month following the sale date. Late submissions may result in the application being filed away without review, so timeliness is crucial. Conclusion Navigating Puerto Rico’s withholding tax refund process can be complex, especially for non-residents selling property on the island. However, with careful preparation and a clear understanding of the required documents, non-resident sellers can recover withheld taxes and maximize their returns on Puerto Rican property investments. For more insights or questions about the withholding tax refund process, feel free to reach out in the comments below! For further assistance or information, please contact us at [email protected] or 787-473-8985. Disclaimer:The information provided is for informational purposes only and should not be considered legal or tax advice. Consult with a qualified attorney or tax advisor to discuss your specific situation.