Waves of people are moving to Puerto Rico, including investors, lawyers, hedge funders, and more. Given the astounding tax benefits, many are doing it with good reason. The crypto community may be the biggest wave of all, as the alluring press coverage keeps noting.
For all clients who use a multiple corporation set up, they are aware that they must submit invoices for services performed. The services must be actually performed and at an arm’s length pricing. The contract between the companies must be in writing and should also be approved within the minutes of the company paying for such services. Further, if questioned the client must be able to establish the essentials of an arm’s length agreement. Yet notwithstanding specific direction on how to determine an arm’s length price, having and following a written agreement, some companies do NOT follow the basic requirements to have this type of strategy successfully implemented.
The Made-In-America tax break has been the object of much discussion since the IRS issued the final regulation on July 9, 2020. The tax break creates an effective reduction in the federal corporate tax rate from 21% to 13%. However, it has two problems: (1) the 13% effective tax rate only lasts until 2025, then increases to 16% effective tax rate; and (2) the tax break is only for goods and services produced in the U.S. and sold overseas, missing your U.S. customer base.
Over the years, Tax Law Solutions has worked with many financial advisors, providing turn-key tax reduction strategies to both advisors and their clients. Would you like to learn how else financial advisors are benefiting by working with TLS? Click the link below:
TLS Managing Partner, Dave Runge, Ph.D., discusses why tax reduction strategies are still relatively unknown concepts for small businesses.
Breaking News: IRS moving Tax day (both filings & payments) from April 15th to July 15. Contact us to learn more.
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Fortune 500 companies continue to expand their operations in PR. What do they know that you don’t? TLS has the answer. #Act20 #Act73 #Act22 #businessowner #taxsavings #taxlaw #Puertoricobusiness #opportunityzones #financialplanning #taxplanning #taxconsulting