Puerto Rico lotto gambling winnings tax free?

[BeerAndPoker]

Well that is extremely unfair if someone can win the Powerball jackpot and not have to pay a dime for taxes while everyone else has to just because they opened up the multi-state lottery to Puerto Rico last year.

http://www.13abc.com/story/28109964/...nings-tax-free

Puerto Rico Powerball winner might get winnings tax free
Posted: Feb 14, 2015 10:57 AM EST Updated: Feb 14, 2015 10:57 AM EST
13abc.com Christina Williams


As if winning the lottery wasn't great enough -- what if you didn't have to pay heavy taxes on the cash?

That might just be the scenario for the holder of the winning Powerball ticket here in Puerto Rico.

A ticket sold at this store in San Juan was one of three winners in Wednesday's half-a-billion-dollar drawing.

It's the first time a winner hails from Puerto Rico.

Residents of the U.S. territory do not pay federal income taxes.

But the Caribbean island only joined the Powerball lotto last year -- so it's not clear how tax law will work here.

If the winner is exempt from u-s federal tax, he or she could end up with quite a bit more cash than the other two winners.

Those tickets were sold in Texas and North Carolina.

Them fools should have to pay hefty taxes if everyone else in the US has to.

[Hockey Guy]

We don't have to pay taxes on lotto winnings in Canada either.

I can't believe Americans put up with it TBH. The gov't, who runs it, already gets a pretty good cut of the $ generated.

[Sanlmar]

Well that is extremely unfair if someone can win the Powerball jackpot and not have to pay a dime for taxes while everyone has to....

Them fools should have to pay hefty taxes if everyone else in the US has to.

Ironic sentiment coming from the poker player.

Fuck that. God bless anyone who avoids taxes legally or otherwise.

Got absolutely zero confidence the Feds would have put but a fraction of that money to any worthwhile use.

Welfare moms in Detroit approve this message though.

[BeerAndPoker]

Ironic sentiment coming from the poker player.

Fuck that. God bless anyone who avoids taxes legally or otherwise.

I hate taxes obviously but my point is if I won and had to pay them so should some person playing the same lottery from Puerto Rico.

[TheXFactor]

Hate Taxes? Move To Tax-Free Puerto Rico, Stay American, Avoid IRS
http://www.forbes.com/sites/robertwo...can-avoid-irs/

an income tax in Puerto Rico of only 4%
there is no tax on dividends
If you sell your company, sell real estate, sell shares in public companies, you name it, no capital gain tax

To qualify, an individual must not have been a resident of Puerto Rico within in the last 15 years.
You must become a resident of Puerto Rico by December 31, 2035, and you must reside there for at least 183 days a year.

You also have to do the paperwork, filing an application with the tax authority there. Once that’s approved, it’s a binding contract and you’ll get:

Tax-free interest and dividends earned after you become a resident.
No long-term capital gains tax on appreciation after you become a resident.
5% tax on long-term capital gain for appreciation before you move for any sales during your first 10 years as a resident.

[Dan Druff]

During the poker boom, believe it or not I briefly looked into moving to Puerto Rico (don't laugh) because residents there don't pay any federal income tax. It was literally the only place in the world I could live, still be a US citizen, and not owe any federal income tax.

But it turned out it wasn't that simple.

You are only tax-exempt if all of your income is from within Puerto Rico. Online poker wouldn't qualify for that, as the income would be coming from abroad. Therefore, there would be no tax savings.

Also, Puerto Rico isn't a nice place to live, so I would have only seriously considered it if I was reliably making big, peak-of-poker-boom type money every year, which didn't continue at that pace.

[SrslySirius]

I hate taxes obviously but my point is if I won and had to pay them so should some person playing the same lottery from Puerto Rico.

Crabs in a bucket.

[Dan Druff]

Puerto Rico is often used to film scenes that are supposed to take place in South American countries.

For example, this Deanna Carter music video was filmed there (though it makes Puerto Rico look a hell of a lot more beautiful and charming than it actually is):



On a side note, while the above video is over 18 years old, Deanna Carter still looks fairly hot despite being nearly 50.