InsightsIncentive Legalities Defined
게시됨 2013년 2월 7일 목요일 업데이트 날짜 2013년 5월 19일 일요일

Incentive Legalities Defined

Buying Incentives | Puerto Rico

Waleska Colón from WWC Law

  1. A.     INCENTIVES

Exemption Period from September 1, 2010- June 30, 2013

 

NEW CONSTRUCTION PROPERTY

Definition: New construction, residential properties, suitable for family living, which has not been subject of occupation and is acquired through a LICENSED developer.

Requirements: Seller shall certify by affidavit, that property is newly built and never been previously occupied; including property address, sale date, price, name of purchaser.

Benefits: 100% exemption on long term capital gain, to the First buyer/Seller, as long as it is purchased before June 30, 2013

How to Apply:  Must declare capital gain on tax returns; include the certification from the Department of Treasury (Hacienda)

 

QUALIFIED PROPERTY

Definition: Existing residential real estate property, suitable for family living, occupied or none occupied for residential purposes.

Non-Residential Property- Existing none residential property whose sales price does not exceed $3,000,000.00

Requirements: Seller shall certify by affidavit that property meets requirements of law and regulation; this statement must identify the parties involved in the transaction of the sale, the price, date acquired, and legal description.

Note: Everyone that has title has to sign exclusive agreement in order to sell.

Benefits: First Buyer of Qualified property = 50% exemption of long term capital gain, First Seller = 100% exemption on capital gain as long as it is purchased/sold before June 30, 2013

How to Apply:  Must declare capital gain on tax returns; include the certification from the Department of Treasury (Hacienda)

 

Remember: Property taxes follow property, NOT individual.

Note: In the case of a purchase through Auction, the First seller becomes the person who has made the purchase at the auction.

                                                                                    

USE OF CAPITAL LOSSES GENERATED BY A SALE OF A QUALIFIED PROPERTY

Definition: Applies to taxpaying Qualified Property owners that are not a corporation or a partnership, in which they can claim up to $5,000 of a loss in the sale of a primary residence against their ordinary income in their tax return. Any excess of loss can be reported for a maximum of 15 years subject to a $5,000 limit each year.

Requirements: The sale must take place between September 1, 2010 and June 30, 2013

 

TAX EXEMPTIONS OF REAL PROPERTY AT CRIM

Exemption period: January 1, 2011- December 31, 2018

Definition: Provides 100% exemption in the payment of real property taxes at CRIM for up to 5 years.

Requirements: Applies only to the First Buyer of a New Construction Property development of more than 20 units and registered with the departamento de Hacienda

How to Apply: To request the exemption it is necessary to complete Form BC-71 within 30 DAYS of the acquisition of the property.

 

Note: When closing foreign buyers must appoint someone to represent them in the sale that can be available locally. Assign a power of attorney for transactions with CRIM

EXEMPTION OF CHARGES AND FEES FOR PUBLIC INSTRUMENTS

Exemption period: September 1, 2010- June 30, 2013

Definition: The payment of internal revenue stamps, stamps for legal aid and recording fees required by law for the granting of public documents and filing and registration in the Land Registry

Qualification: Sales and Mortgage of New Construction Property = 100% Exempt of all charges

                      Sales and Mortgage of Qualified Property = 50% Exempt of all charges

             

Note: There are NO EXEMPTIONS in Notary fees 

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