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Puerto Rico Tax Law Questions & Answers
1 Answer | Asked in Tax Law for Puerto Rico on
Q: I have to pay tax for used 2018 porsche panamera 4 hybrid plug in puerto rico?
James L. Arrasmith
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answered on Oct 7, 2024

When purchasing a used car, such as the 2018 Porsche Panamera 4 Hybrid plug-in in Puerto Rico, you will need to pay certain taxes and fees. Puerto Rico imposes a sales and use tax (IVU), which applies to both new and used vehicles. In addition, there is a "patente" or excise tax, which is... View More

2 Answers | Asked in Tax Law for Puerto Rico on
Q: How can I search to see if I owe taxes? If I can’t access the system? I want to see if there are any liens
James L. Arrasmith
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answered on Sep 14, 2024

If you're trying to check if you owe taxes in Puerto Rico and can't access the online system, there are a few steps you can take. Start by contacting the Puerto Rico Department of Treasury (Hacienda) directly. You can reach them by phone or visit a local office in person. This allows you... View More

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1 Answer | Asked in Tax Law for Puerto Rico on
Q: When selling property (land and house) in PR, does the sale go through if there are owed taxes?

My father (89) was always diligent paying property taxes in PR. He sold his property in the early 2000’s and at the time of sale there were no outstanding property tax debts. The sale went through all official channels (bank, realtors, lawyers, etc).

The person that bought the house more... View More

James L. Arrasmith
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answered on Aug 10, 2024

When selling property in Puerto Rico, any outstanding property taxes should be settled before the sale can proceed. Typically, the sale would not have gone through if there were unpaid taxes at that time. Since your father sold the property through official channels, it is likely that all taxes... View More

1 Answer | Asked in Tax Law for Puerto Rico on
Q: Tax residency question

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James L. Arrasmith
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answered on Jul 18, 2024

To determine your tax residency status for 2024, you need to consider the substantial presence test used by the IRS. Since you arrived in the U.S. on March 15, 2024, and have spent 176 days in the country so far, your stay in Puerto Rico will also count towards your total days in the U.S. for tax... View More

1 Answer | Asked in Real Estate Law and Tax Law for Puerto Rico on
Q: Where would I file the Request for the transfer of ownership? can this be done online? Where are original records kept?

Assuming that most of the process should have been already done, where would I go to find the measurements of the plot? I had the land surveyed when we started the process back in 2007 when my father passed.I’m pretty sure I have most of these documents. The only thing I don’t have is the title... View More

Rafael  Pagan-Colon
Rafael Pagan-Colon
answered on Mar 23, 2023

Ownership of the property can be established by requesting a registry certification from the Puerto Rico Property Registry (Registro de la Propiedad) with copy of the scanned foils that shows the historical tract of the real estate property. You can physically visit the Registry located in the... View More

1 Answer | Asked in Estate Planning, Real Estate Law, Tax Law and Probate for Puerto Rico on
Q: My mom wants to gift her PR home to me (her only heir). What tax/other issues should I be aware of?

My mother is a PR resident (I am not), and wants to gift her home to me before she remarries or dies. She also said she may want to still live in the home after she gifts it to me. She said she would gift the title, but still have it enscribed in her name. I want to accept her kind gift, but I am... View More

Rafael  Pagan-Colon
Rafael Pagan-Colon
answered on Jul 18, 2022

First off, unless your mother donates the property to you by way of a deed the Property Registry would still register the real estate in her name. Once she transfers the property in fee simple to you, it needs to be inscribed in your name by filing a certified copy of the donation deed and of your... View More

1 Answer | Asked in Tax Law and Real Estate Law for Puerto Rico on
Q: Does one have to pay federal taxes on the sale of land or property in PR? Specifically on inherited property?

CRIM tells me that the only name on their listing is my father’s therefore my sisters and I are the only heirs. Someone wants to buy the property ( cash sale), according to them once we have the declaration of heirs the property is transferred and there are no closing cost or taxes to be pay on... View More

Rafael  Pagan-Colon
Rafael Pagan-Colon
answered on Mar 21, 2022

What you say is not entirely correct.

As a rule, there is no inheritance tax applied. Once the declaration of heirs has been issued by the Puerto Rico courts, you need to procure a certification of value and a certification of debt from CRIM. With these certifications and a copy of the...
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1 Answer | Asked in Estate Planning, Tax Law and Probate for Puerto Rico on
Q: mom died in PR now my brother is ordering me to give him my inheritance portion prior to distribution w/o documentation

I am being ordered to fly from California to NY to sign documents and turn over my portion of the inheritance to him/them. I have asked for documentation repeatedly and he refuses to give me anything not even verbal information about the matter and now he is threatening to abandoned my father, not... View More

Rafael  Pagan-Colon
Rafael Pagan-Colon
answered on Sep 6, 2021

First off, blackmailing you into resigning your inheritance is illegal. If your siblings have denied you access to documentation pertaining to your mother's estate (assuming that she died in Puerto Rico), you have the right to request said documents through the Puerto Rico Courts, by way if an... View More

1 Answer | Asked in Real Estate Law, Tax Law and Land Use & Zoning for Puerto Rico on
Q: If a sibling passes prior to parent, are their children entitled to Puerto Rico land inheritance(1/3 law) under PR law?

My mother/aunt-in-law wish to sign over their mothers property in PR to my wife. I have several questions:

1) Their brother died prior to her grandmother, but he had children. Do they have a claim to the property? 2) I am unsure if anyone took care of the inheritance tax, as seen on... View More

Nelson Jose Francisco Alvarez-Aponte
Nelson Jose Francisco Alvarez-Aponte
answered on Jul 3, 2020

Hello and thank you for using Justia. First off, I thank you for your services to the Armed Forces.

1) The Grand Mother is the "Causante" thus an Estate has to be created in her name. The members of the Estate are your Mother in Law, Aunt in Law and your deceased Uncle in Law. The...
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1 Answer | Asked in Estate Planning, Real Estate Law and Tax Law for Puerto Rico on
Q: Mom passed in 2005, she owned lots of land and buildings. No Inheritance Tax Return was ever filed.

Is there a tax with interest and penalty due. Value of Estate is around $4m. There has been 3 bad lawyers involved and internal as well as external fighting that has now lasted 17yrs from DOD. I am very concerned about potential liabilities. All born in PR, 3 live in USA and 1 still lives in P.R..

Nelson Jose Francisco Alvarez-Aponte
Nelson Jose Francisco Alvarez-Aponte
answered on Jun 8, 2020

Hello and thank you for using Justia. Very sorry to read that you have had horrible expirience with the prior three Attornys.

An Inheritance Tax Return must be filed as soon as possible. There will be a Tax liability on the value of the Estate plus penalties and ingrest fees. In addition...
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1 Answer | Asked in Real Estate Law and Tax Law for Puerto Rico on
Q: How do squters get their power and water turned on with out owning the deed to a property.
Nelson Jose Francisco Alvarez-Aponte
Nelson Jose Francisco Alvarez-Aponte
answered on Apr 19, 2020

Hello and thank you for using Justia. Usually a sworn Declaration stating that they are the residents of said property will allow them to get public utilities connected.

2 Answers | Asked in Intellectual Property, Land Use & Zoning, Real Estate Law and Tax Law for Puerto Rico on
Q: My dad has property in Puerto Rico. He is now in a nursing home in NJ. Will we lose the property? What can I do to claim

I would like to know if notorized letter is signed in NJ will it help with changing name on property in PR. Not sure, what I need to do as my father is now in a nursing home. He never fixed the right papers to leave me the property. I don't know if the property will be lost?

D. Mathew Blackburn
D. Mathew Blackburn
answered on Nov 5, 2019

No, a notarized letter is not sufficient to transfer real property. You need a properly drafted deed signed and notarized by your father. First you'll need to determine the ramifications of a transfer. Will this effect medicaid /medicare, will it be a taxable gift, does he have an estate plan,... View More

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2 Answers | Asked in Land Use & Zoning, Real Estate Law and Tax Law for Puerto Rico on
Q: Uncle passed away and had no children. Only surviving relative is my mom. Is she the owner of his property now?

No known will is in place. And we don't know if annual taxes have been paid on property.

Ramon  Olivencia
Ramon Olivencia
answered on Aug 31, 2019

If the property is located in PR and his parents are no longer alive, and he did not leave a will, then the heir will be your mom but the inheritance process will have to be done in order for her to formally become the owner. If the property was his principal residence and he had obtained full... View More

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3 Answers | Asked in Divorce and Tax Law for Puerto Rico on
Q: Hello! Will the money received by ex spouse as divorce settlement be taxed?
Andrew M Steiger
Andrew M Steiger
answered on Jun 11, 2019

In general, the 2017 TCJA changes the tax laws related to divorce in some key respects. The tax aspects of a property settlement did not change where property changes hands at the time the divorce is finalized. But be careful of receiving property with a built in tax gain where the value exceeds... View More

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1 Answer | Asked in Real Estate Law, Tax Law and Estate Planning for Puerto Rico on
Q: My grandmother wants to sign the deed for her property over to me in Puerto Rico. what complications may I face?

She has the deed and it is registered with the property registry in her county under her name. I am not sure if she owes any taxes etc. on the property but she has owned this land for over 30 years. The property needs maintenance as well. I am looking for some tips in the right directin on how... View More

Nelson Jose Francisco Alvarez-Aponte
Nelson Jose Francisco Alvarez-Aponte
answered on Jun 11, 2018

Good evening and thank you for using JUSTIA. There are various questions you need to be answered before you accept such as is there a mortgage, is this her only property, are there any children (future inheritors), is it tax free, any liens, ect. The first thing you should do is have a title search... View More

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