DecreeCheck

Check Your Act 60 Rental Income Rules in Minutes

Don't wait weeks for answers about your rental income taxes under Act 60. Our automated tool quickly checks your rental income classification—short-term vs. long-term—and sourcing rules to help you spot potential red flags before you file. Get the clarity you need, instantly.

Check Your Act 60 Rental Income Rules in Minutes

Short-Term vs. Long-Term Rentals: The Fast Check

The tax you pay on rental income depends on one simple thing: is it a short-term or long-term rental? Generally, rentals under 90 days are considered part of an active business and may get the 4% Export Services rate. Long-term rentals are passive income, taxed at regular PR rates. It's a critical difference, and getting it wrong is a common mistake. Our tool is designed to quickly analyze your rental activity based on the information you provide, giving you an instant assessment of your classification. In a market where most decree holders find help through word-of-mouth, our digital solution offers immediate insight.

Is Your Rental Income Sourced Correctly?

All income from a property in Puerto Rico is PR-sourced, but that's only half the story. To get the 4% rate, it usually has to be 'export service' income. This means you're providing a service to people outside of Puerto Rico. If you're just collecting rent from locals on long-term leases, that income typically won't qualify for the best tax benefits. DecreeCheck helps you understand this distinction by asking simple questions about your rental activities. We'll help you identify if your income sourcing aligns with Act 60's export requirements, a crucial step for any real estate investor in Puerto Rico.

Common Scenarios and Quick Answers

Are you renting your beach condo to tourists? That could be export service income if structured correctly. Are you leasing an apartment to a family that lives and works in San Juan? That's likely standard PR rental income. These different scenarios have vastly different tax outcomes. Instead of paying a CPA thousands ($5,000-$25,000 is common) for a lengthy review, you can use our tool to get a quick check on where you stand. Our platform has seen over 80% growth in adoption because it provides fast, accessible answers for decree holders who need immediate clarity on their tax situation.

Frequently Asked Questions

How quickly can I check my rental income compliance?

In minutes. Our automated platform is designed for speed. Just answer a few questions about your rental properties and income, and you'll get an immediate report highlighting potential issues.

Is this a replacement for my CPA?

No. DecreeCheck is a tool for getting a quick, affordable second opinion on your tax position. It's designed to help you spot potential problems so you can have a more informed conversation with your CPA. It does not provide tax advice.

What's the most common mistake with rental income under Act 60?

One of the most frequent issues we see is misclassifying rental income. Many decree holders assume all their income qualifies for the 4% rate, but the rules for rental properties, especially regarding 'export services,' are very specific. Our tool is designed to catch these potential classification errors.

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This content is for informational purposes only and does not constitute tax, legal, or accounting advice.