Taxes on Puerto Rico sourced rental income

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Taxes on Puerto Rico sourced rental income

Peter Amico
Investor · Orlando, FL · Member since 2017 · 21 posts · 6 votes
Hello. I've searched the forums and can't find this answer. I'm about to buy a 4 plex in Puerto Rico. What is the tax rate on rental income sourced in pr to a person who has primary residence in Florida? Is there a foreign tax credit for any tax paid?
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  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    8y

    @Peter Amico

    You may be required to file a PR tax return.

    You would be entitled to a foreign tax credit for taxes paid to PR. 
    You would need to file form 1116 to claim the taxes paid to PR.

    PR is a US territory but considered a foreign jurisdiction for 1116 purposes. The foreign tax credit avoids double taxation.

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