Hartford, CT · Member since 2014 · 41 posts · 6 votes
I just learned that if you start up a company in Puerto Rico and flip a house in California and hypothetically profit 100k on the flip, that since you're incorporated in PR that the USA can't tax that profit. And PR has wicked low tax rates. Is this true?
Lender · Camuy, Puerto Rico · Member since 2016 · 56 posts · 52 votes
10y
Hi Chandan,
i saw that no one chimed in on your question.. The answer is yes.. I'm a lender here in Puerto Rico, and I primarily work w/ people from the states looking to finance RE properties here (1-4 units residential) prices are historically low, and depending on the location you for sure can experience cash flow quickly on your investments.
I suspect that CA will find a way to get its pint of blood, and I wouldn’t fight them. Chances are you will lose. Worse case, you’ll waste a lot of time, and maybe some legal fees. If your time is money, spend it on something productive.