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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?
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
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.
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!
