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CPA Rachel Farris joins us to talk about how you can benefits from Puerto Rico's Act 60 tax incentives by becoming bona fide residents of the island. Rachel explains how the program was created to attract capital and talent to Puerto Rico, the rules around residency and post-move appreciation, and the common pitfalls people face when trying to qualify.

She also discusses lifestyle differences, cost of living, and more, as the Act requires genuine relocation and compliance with IRS rules to be done correctly.

Rachel Farris explains Puerto Rico's Act 60 tax incentives and how they allow U.S. citizens to pay 0% on capital gains, interest, and dividends.
The program offers a 4% corporate tax rate for businesses relocated to Puerto Rico.
Rachel details the legal requirements for becoming a bona fide Puerto Rican resident.
The conversation covers the importance of distinguishing pre-move and post-move capital gains for tax purposes.
Kirk and Rachel discuss common pitfalls people face when trying to qualify for Act 60 benefits.
They explore how Act 60 was designed to attract capital, entrepreneurs, and skilled professionals to Puerto Rico.
Rachel outlines lifestyle differences between the mainland U.S. and Puerto Rico.
The discussion includes the island's cost of living, housing options, and healthcare quality.
Education systems and family considerations for those relocating are reviewed.
Rachel emphasizes the need for real relocation and compliance with IRS residency rules.
They touch on hurricane preparedness and infrastructure realities of island living.
The episode concludes with insights on how to properly structure a business move to maximize Act 60's benefits.

0:00.0	Welcome to the Money Tree Investing Podcast.
0:04.0	Stock market, wealth, personal finance, value stocks, invest in your life.
0:10.0	Hello, Smart Money Tree Podcasts listeners. Welcome to this week's show.
0:14.0	My name's Kirk Chisholm and I'll be your host. So today I'm joined with Rachel Ferris.
0:18.0	How you tonight, Rachel? I'm doing great. How are you, Kirk?
0:21.6	Great.
0:22.6	Well, glad you having this show.
0:23.6	This is an exciting topic.
0:24.6	I've been meaning to talk about this for a while.
0:25.6	It's always of interest to me, but it's hard to find people with this kind of knowledge. So, Rachel, tell us a bit about your background. So I run a CPA firm that has offices in both San Francisco and Puerto Rico.
0:36.7	We specialize in helping individuals,
0:39.0	entrepreneurs, and businesses relocate to Puerto Rico to take advantage of the Act 60 tax incentives.
0:45.1	So for those of you that haven't heard of that, that is essentially a 0% tax on all short
0:49.8	and long-term capital gains, a 0% tax on interest and dividends, and a 4% corporate income tax rate.
0:56.5	So for people that really want to get an edge over the competition or gain financial freedom,
1:01.3	Puerto Rico has become a very lucrative opportunity for a lot of U.S. citizens.
1:06.0	So how did you get involved with this? You're an accounting firm. Do you do other things,
1:09.8	or is this just all you do is an accounting firm? We only do Act 60. So a kind of interesting thought process.
1:15.6	I was working in Big 4 accounting for quite a many years in mergers and acquisitions. And I had a
1:21.5	family friend that came to me that was looking to move to Puerto Rico. And I had never heard of
1:26.0	Act 60's tax incentives. I was actually quite
1:28.2	confused why they'd leave their fancy life in California to move halfway across the world to a little
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How to Use Puerto Rico's Act 60 to Growth Your Wealth

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