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Old 01-23-2014, 04:35 PM
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Capital Gains Tax for non-residnets FL vs PR

I am European Union citizen and live/ work in NY - US resident (but I am not US citizen). I am looking to buy real estate, considering Florida and Puerto Rico. I have the following questions:
1. What is the capital gains tax on real estate in florida vs in puerto rico for non US citizens
2. What is the txt rate on rental income in florida vs in puerto rico for non US citizens

Thanks in advance!



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Old 01-24-2014, 01:53 AM
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Originally Posted by taxflpr View Post


#1;I am European Union citizen and live/ work in NY - US resident (but I am not US citizen). I am looking to buy real estate, considering Florida and Puerto Rico. I have the following questions:



#2;1. What is the capital gains tax on real estate in florida vs in puerto rico for non US citizens



#3;2. What is the txt rate on rental income in florida vs in puerto rico for non US citizens

Thanks in advance!
________________________________________
#1;you mean you are a US resident for tax purposes.ok.then, as a US resident, you need to pay taxes to IRS/your home state, NYS, on your US source and world wide income that you earn overseas. Just ike a reg US citizen/ a green card holder.



#2;please read below; no specific tax rate on rental income; in general, LTCG rate is 0% aslong as your marginral tax rate is 15% or lower; if your marginal tax rate if=s higher than 15%, then your LTCG rate’d be 15%.

#3;there is no certain tax rate on your rental income in FL. I mean you need to report your rental income on Sch E of 1040 and on line 17 of 1040UNLESS you are a real estate pro. If you are a r/e pro, then youmust file Sch C of 1040 and need to file Sch SE for SECA tax and on 1040 line 12.So you rental income is taxed at your marginal tax rate.however, there is no state income tax in FL. So, this is source income generated from the state of Florida. Since you are a resident of NYS, you pay state income taxes on this income to NYS only because Florida does not have state income taxes. Nonresident foreigners are taxed on only on their income from sources in Puerto Rico.foreigners are taxed on only on their income from sources in Puerto Rico.So you canclaim taxes paid on your rental income generated in PR on your NYS return.

Note; In general, US citizens and resident aliens who are bona fide residents of Puerto Rico during the entire tax year, which for most individuals is Jan 1 to Dec 31, are not required to file a U.S. federal income tax return if they have income only from sources within Puerto Rico. If they have income from sources outside of Puerto Rico, including within the 50 states or the District of Columbia, or if they are employees of the U.S. government, they are required to file a U.S. federal income tax return. Bona fide residents of Puerto Rico generally do not report income received from sources within Puerto Rico on their U.S. income tax return. However, they should report all income received from sources outside Puerto Rico on their U.S. income tax return.



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