88: Structuring Tax Free Income, Puerto Rico Act 22 - Jorie Roberts

Invest Like a Boss

Sam Marks Johnny FD Derek Spartz

Business, Investing

4.8 • 518 Ratings

🗓️ 15 March 2018

⏱️ 59 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Jorie Roberts is the founder of Marjorie Roberts, PC, a firm composed of attorneys who specialize in tax, corporate/securities, and business law, and work with the economic incentive programs in Puerto Rico and the U.S. Virgin Islands. She has a vast knowledge of tax law and holds law degrees from Harvard University, Cambridge University, and New York University.

During the episode, Jorie explains two tax laws, known as Act 20, the Export Services Act, and Act 22, the Individual Investors Act, which shields new residents of Puerto Rico from paying most federal income. And since these laws apply to the residents of Puerto Rico, Jorie discusses the process and requirements in applying for residency. Also, she gives comprehensive examples on what is eligible for tax exemptions.

Where we are:

Jorie - U.S. Virgin Islands

Sam - Denver Colorado

Michael - Bangkok

Links:

Jorie’s Firm - MARJORIE ROBERTS, P.C. - Attorneys at Law

Michael’s publication - CEF Insider

Time Stamps:

04:01 – Acts 20 and 22: What they are and who they’re for?

05:59 – Applying for residency in Puerto Rico

10:15 – Is owning Real Properties required?

11:45 – How can expats benefit from the tax exemptions?

13:52 – Income tax structure using Act 22

16:29 – Are Interests and Dividends taxed?

19:44 – Examples of income structures and its tax exemptions

29:25 – What is eligible for tax exemption?

32:12 – Application process for both Acts

36:02 – Recommendations on how to start

45:32 – Tax in the US vs. other countries

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Transcript

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0:00.0	Welcome to the Invest Like a Boss podcast. I'm Sam Marks and I'm Johnny FD. We're self-made entrepreneurs who invest our own money and use modern technology to invest like a boss. Join us each week for exclusive interviews with our network of modern investors, business owners, and multi-millionaires to discover new ways to invest our hard-earned cash. Everybody, welcome back to this week's episode.
0:22.1	And Johnny, unfortunately, is in the Himalayas sick with altitude.
0:26.6	Is it altitude poisoning or sickness?
0:28.3	I'm not sure.
0:29.0	Altitude sickness.
0:31.3	And he's lost his voice.
0:32.6	He had to come down the mountain.
0:34.2	So he won't be joining for the intro outro this week, but I have a special guest,
0:40.3	none other than Dr. Michael Foster, also known as a CF professor. Michael, how you doing?
0:45.7	I'm doing great time. Well, thanks for filling in, man. You're across the world. I'm in Denver,
0:51.0	and you are in Bangkok, I believe. I am indeed. Good man. Well, appreciate you accommodating us. I know it's late your time. And we're going to talk about taxes on this episode, specifically a little free lunch that Americans can get in Puerto Rico, one of the very, very few loopholes that are relatively easy to take advantage of
1:12.6	for U.S. citizens. Michael, you're not living in Puerto Rico. You're living in Bangkok. What are you
1:18.5	doing about taxes? I know you're huge in municipal bonds, tax-free income. You got me into those.
1:23.7	Are you doing anything specifically on your personal side to help with your tax situation?
1:29.8	Well, assuming that the IRS isn't listening, I can say that definitely living abroad has a couple of benefits and that, you know, it's very complicated and it's idiosyncratic.
1:40.7	It depends on your situation.
1:42.0	But for me personally, because of the nature of the
1:45.1	sources of income I get, there is an exclusion up to a certain amount. And so anything over that
1:51.0	is taxed. But then there are ways to minimize that. Like you said, municipal bonds are a big
1:57.7	part of my strategy with that. Another is incorporating and having an accountant
2:03.7	that helps you identify tax rights is pretty beneficial as well. But to your point, it gets
2:10.5	pretty complicated, definitely. And living abroad provides a lot of opportunities to minimize
	...

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