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Thibodeaux
(@thibodeaux)
Active Member

I am a bona fide resident of the USVI for tax year 2020.  Is interest earned on money in a stateside bank account  considered non-VI source income?  Similarly, are capital gains from the sale of shares in a publicly traded mutual fund considered non-VI source income?

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Topic starter Posted : March 8, 2021 9:28 am
rewired
(@rewired)
Advanced Member

@thibodeaux

You need to contact a VI tax accountant or the BIR for a definitive answer...

I did come across this document on the BIR's web site that may provide some vague guidance regarding your questions.

https://bir.vi.gov/content/booklets/tax_Structure_2019-01-31.pdf

 

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Posted : March 11, 2021 8:57 am
Thibodeaux
(@thibodeaux)
Active Member

Thanks for the help!  I have seen that document - it doesn't really define "non-VI source income".  If anyone else is interested I did find that the IRS website has Publication 570, https://www.irs.gov/forms-pubs/about-publication-570 with Table 2-1 that makes it pretty clear from where interest income is to be considered to have been sourced.  A subsequent section talks about gains from investments.

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Topic starter Posted : March 11, 2021 4:41 pm
Gator's Mom
(@gators_mom)
Trusted Member

Publication 570 - Special Rules for USVI Bona Fide Residents starts on page 18.

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Posted : March 14, 2021 9:02 am
Lyla1515
(@lyla1515)
Active Member

@Thibodeaux - care to share what you found out? 

I'm looking into the same Q's

 

thanks!

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Posted : June 16, 2021 1:07 am
Thibodeaux
(@thibodeaux)
Active Member

I listed the interest earned on money in US bank accounts and interest paid by US entities, stock dividends from US companies and index funds, and capital gains from the sale of index funds, on Form 1040-INFO as non-VI sourced income. 

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Topic starter Posted : June 16, 2021 12:52 pm
Stxdreaming1
(@stxdreaming1)
Advanced Member
Posted by: @thibodeaux

I listed the interest earned on money in US bank accounts and interest paid by US entities, stock dividends from US companies and index funds, and capital gains from the sale of index funds, on Form 1040-INFO as non-VI sourced income. 

Am I right in thinking that the tax rate for this is the same as the mainland? The VI for tax purposes, is considered the same as the mainland right? Here in PR, soooo many people are coming in under Act 60...lots of businesses and crypto guys! 

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Posted : June 20, 2021 11:49 am
Thibodeaux
(@thibodeaux)
Active Member

In my example, there would be no difference in the amount of tax owed.  My concern was with correctly filing form 1040-INFO.  

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Topic starter Posted : June 21, 2021 10:43 am
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