Good morning. My name is Nicholas Prouty, and I am the Managing Partner of Putnam Bridge an investment firm located in Santurce. I appreciate the invitation to speak today and share some thoughts with regard to the role technology will play in the economic turn-around of Puerto Rico. However before beginning, let me first address the recent ratings downgrade by Standard & Poor’s. My fundamental belief in Puerto Rico remains absolutely unchanged – Puerto Rico is in the process of a great reinvention and the smart money knows it and that money will soon make its way into your hands.

Continue reading “I am a Believer in Puerto Rico” →

It seems almost everywhere you look these days, bankrupt governments are raising taxes.

But no matter where you are, there are always solutions to do something about it.

For example, if you’re an Australian taxpayer, you can move to Norfolk Island and pay minimal tax. If you’re British, you can structure your assets in Gibraltar or the Channel Islands.

Continue reading “How You Can Move To Puerto Rico and Pay Almost Zero Tax” →

Congratulations to incoming President Trump. Yet many have questioned what happens to income tax planning?

First, 2016 tax rates are at 39.6% for individuals and 39% for Federal Corporate rates. State taxation has not changed and has a top rate of 13.3% in California. The additional Medicare taxes are still the law, but will hopefully be eliminated in coming years.

Continue reading “Tax Planning Must Happen NOW !!!” →

As the U.S. Treasury Department continues to tighten its noose around offshore accounts, a new tax haven has sprung up under its nose in the Caribbean. Welcome to Puerto Rico–island of tropical breezes, and (for new arrivals only) a 0% tax rate on certain dividends, interest and capital gains.

Puerto Rico is about the same size as Connecticut but with more palm trees, twice the unemployment rate, a third the median household income and a tiny fraction of the hedge funds–a deficiency the financially teetering territory aims to correct by turning itself into a refuge for tax-oppressed millionaires and billionaires.

Continue reading “Puerto Rico Bids To Become New Age Tax Haven” →

Despite Puerto Rico’s massive debt crisis, Paulson sees big profits ahead. He has plowed “quite a bit” ­an estimated $1.5 billion ­­ of his personal wealth into buying hotels, a resort and office buildings on the island. Paulson compares Puerto Rico today to Miami in the 1980s.

“It’s similar to that period in Miami’s history,” Paulson said Thursday at the Puerto Rico Investment Summit. “There was a lot of real estate on the beach, lots of abandoned buildings and vacant lots. That was definitely the best time to buy [in Miami].”

Continue reading “Billionaire to Put His Money in Puerto Rico” →

Quill Corp. vs. North Dakota

On May 26th, 1992, United States Supreme Court held that a mail order house, may have the minimum contacts necessary in accordance with the due process clause of the constitution with the taxing state relative to imposition of tax, yet lack the substantial nexus, as required by the Commerce Clause, with the state to have such tax imposed. Therefore, mere lack of physical presence in a taxing state does not in and of itself bar the taxing state from asserting a tax against such company.

Continue reading “STATE TAXATION ON MAIL ORDER” →

In a prior column I wrote extensively on the usage of private annuities to sell one’s business, real estate or any large assets with the current incurrence of income tax.  IRC §72 and Rev. Rul. 69-24, 1969-1 C.B. 43.  Case law supported this view point and there had not been much if any current litigation on this issue.  Bell v. Comr., 60 T.C. 469 (1973), 212 Corp. v. Comr., 70 T.C. 788 (1978).

Continue reading “What the IRS Giveth the IRS Taketh Away” →