Comments by "dlukton" (@dlukton) on "Puerto Rico vs. Offshore Tax Havens" video.

  1. "FEIE doesn't apply to capital gains" Strictly speaking, that's probably true. But if you own a corporation that is located in a foreign country (let's say British Virgin Islands, for example), and if that corporation holds a brokerage account, and if that brokerage account generates capital gains, you could pay yourself a salary of $106K per year (and you could pay your spouse a separate salary as well). And so the question at that point will NOT be whether capital gains can be shielded from taxation; rather, the question will be, can the SALARY be shielded from federal income taxes?
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  2. Yeah, I had a feeling that the Puerto Rican government would eventually become less generous (with Acts 20 & 22) over time.
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  3. I have no idea how much those guys pay in tax. But if Bezos simply holds on to his stock, and doesn't sell it, he'd only have to pay tax on his salary (Amazon doesn't pay a dividend on its stock). There is no federal tax on assets.
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  4. Not hard to find them on Youtube. For example, type in "puerto rico and act 20" (or "puerto rico and act 22") in the search query box, and a lot of videos come up.
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  5. No doubt this video will be of great interest to most regular viewers of this channel. It seems to me that... to the extent it is possible to shield $212K of income from federal taxation ($106K for the owner; $106K for the spouse)... and assuming that the "self-employment tax" can be avoided... moving to a foreign country (i.e., not Puerto Rico) will be the better option for the vast majority of US citizens who own a business.
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  6. I think that...when you renounce...you're allowed to hang on to a significant amount of unrealized capital gains without having to pay tax on it. You should look into that angle.
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