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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13119
Experience:  15years with H & R Block. Divisional leader, Instructor
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PUERTO RICO TAX QUESTION: i am a Florida resident. I have an

Customer Question

PUERTO RICO TAX QUESTION: i am a Florida resident. I have an apartment in Puerto Rico which I am in the process of selling. I bought it for $105,000 and have an acceptable offer of $90,000. I have a mortgage balance of about $60,000. Will the government of Puerto withhhold money from me at the closing, having realized a Lt. capital loss and what would be the amount withheld in light of the fact that there is a mortgage balance.
Submitted: 5 months ago.
Category: Tax
Expert:  Robin D. replied 5 months ago.
HelloEarnings of nonresident individuals from the sale of a property are subject to a withholding tax of 25%, which is levied on the gross selling price. The tax is withheld based on the sale price. You can file a nonresident return and show the difference in basis and sale for a refund of tax withheld over the true gain.
Customer: replied 5 months ago.
My concern is that the government of Puerto Rico is broke and if taken out of the proceeds at the closing, I may never see the money again. To avoid this, can I get around the withholding rule by filing my 2016 tax return @ or before the closing.
Expert:  Robin D. replied 5 months ago.
No, the withholding is required at closing.
Expert:  Robin D. replied 5 months ago.
Checking to see if you responded again