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Dr. Fiona Chen
Dr. Fiona Chen, Certified Public Accountant (CPA)
Category: Capital Gains and Losses
Satisfied Customers: 482
Experience:  Former IRS Revenue Agent
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My special Puerto Rico corporation owns a condo in Florida

Customer Question

My special Puerto Rico corporation owns a condo in Florida since 2007. The purchase price was $222,500. I added $5,000 in improvements at the time of purchase. The condo is now worth around $180,000. I keep corporate books. The special corporation is owned by my wife and myself. The corporation renders tax return in Puerto Rico. Not in Florida. I am considering selling the condo, to pay off a mortgage I have in PR. I will like to know if there is any tax to be paid in Florida? The sale proceeds will be deposited under the corporations name. I am retired since 2010. Please advise.
Submitted: 11 months ago.
Category: Capital Gains and Losses
Expert:  Dr. Fiona Chen replied 11 months ago.

Dear Customer,

The State of Florida requires reporting of corporate income tax returns. Your corporation needs to report this sales on the corporate income tax return to the State of Florida.

Corporations registered and incorporated in Puerto Rico enjoys many tax benefits, but this capital gain or mostly likely capital loss, based on your description, need to be reported to the State of Florida. However, according to the description above, we cannot tell whether you will have a loss or gain and how much to pay to the State of Florida. Most basically, we have not seen the business purpose of the corporation condo.

This requirement has no relationship with whether you are retired or not. This requirement is made on your corporation.

Please feel free to follow up.


Fiona Chen, MPA, Ph.D., CPA, ABV, CFF, CITP

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