§933 — Income from sources within Puerto Rico
25 citing cases
Statute Text — 26 U.S.C. §933
The following items shall not be included in gross income and shall be exempt from taxation under this subtitle:
In the case of an individual who is a bona fide resident of Puerto Rico during the entire taxable year, income derived from sources within Puerto Rico (except amounts received for services performed as an employee of the United States or any agency thereof); but such individual shall not be allowed as a deduction from his gross income any deductions (other than the deduction under section 151, relating to personal exemptions), or any credit, properly allocable to or chargeable against amounts excluded from gross income under this paragraph.
In the case of an individual citizen of the United States who has been a bona fide resident of Puerto Rico for a period of at least 2 years before the date on which he changes his residence from Puerto Rico, income derived from sources therein (except amounts received for services performed as an employee of the United States or any agency thereof) which is attributable to that part of such period of Puerto Rican residence before such date; but such individual shall not be allowed as a deduction from his gross income any deductions (other than the deduction for personal exemptions under section 151), or any credit, properly allocable to or chargeable against amounts excluded from gross income under this paragraph.
Treasury Regulations
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Treas. Reg. §1.933-1Exclusion of certain income from sources within Puerto Rico
(a) General rule. (1) An individual (whether a United States citizen or an alien), who is a bona fide resident of Puerto Rico during the entire taxable year, will exclude from gross income the income derived from sources within Puerto Rico, except amounts received for services performed as an employee of the United States or any agency thereof. For purposes of section 933 and this section, an employee of the government of Puerto Rico will not be considered an employee of the United States or of an agency of the United States.
(2) The following example illustrates the application of the general rule in paragraph (a)(1) of this section:
(b) Taxable year of change of residence from Puerto Rico. A citizen of the United States who changes his residence from Puerto Rico after having been a bona fide resident thereof for a period of at least two years immediately preceding the date of such change in residence shall exclude from his gross income the income derived from sources within Puerto Rico which is attributable to that part of such period of Puerto Rican residence which preceded the date of such change in residence, except amounts received for services performed as an employee of the United States or any agency thereof.
(c) Deductions and credits. In any case in which any amount otherwise constituting gross income is excluded from gross income under the provisions of section 933, there will not be allowed as a deduction from gross income any items of expenses or losses or other deductions (except the deduction under section 151, relating to personal exemptions), or any credit, properly allocable to, or chargeable against, the amounts so excluded from gross income. For purposes of the preceding sentence, the rules of § 1.861-8 will apply (with creditable expenditures treated in the same manner as deductible expenditures).
(d) Definitions. For purposes of this section—
(1) The rules of § 1.937-1 will apply for determining whether an individual is a bona fide resident of Puerto Rico; and
(2) The rules of § 1.937-2 will apply for determining whether income is from sources within Puerto Rico.
(e) Effective/applicability date. Paragraphs (a), (c), (d), and (e) of this section apply to taxable years ending after April 9, 2008.
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Treas. Reg. §1.933-1(a)General rule.
General rule. (1) An individual (whether a United States citizen or an alien), who is a bona fide resident of Puerto Rico during the entire taxable year, will exclude from gross income the income derived from sources within Puerto Rico, except amounts received for services performed as an employee of the United States or any agency thereof. For purposes of section 933 and this section, an employee of the government of Puerto Rico will not be considered an employee of the United States or of an agency of the United States.
(2) The following example illustrates the application of the general rule in paragraph (a)(1) of this section:
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Treas. Reg. §1.933-1(b)Taxable year of change of residence from Puerto Rico.
Taxable year of change of residence from Puerto Rico. A citizen of the United States who changes his residence from Puerto Rico after having been a bona fide resident thereof for a period of at least two years immediately preceding the date of such change in residence shall exclude from his gross income the income derived from sources within Puerto Rico which is attributable to that part of such period of Puerto Rican residence which preceded the date of such change in residence, except amounts received for services performed as an employee of the United States or any agency thereof.
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Treas. Reg. §1.933-1(c)Deductions and credits.
Deductions and credits. In any case in which any amount otherwise constituting gross income is excluded from gross income under the provisions of section 933, there will not be allowed as a deduction from gross income any items of expenses or losses or other deductions (except the deduction under section 151, relating to personal exemptions), or any credit, properly allocable to, or chargeable against, the amounts so excluded from gross income. For purposes of the preceding sentence, the rules of § 1.861-8 will apply (with creditable expenditures treated in the same manner as deductible expenditures).
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Treas. Reg. §1.933-1(d)Definitions.
Definitions. For purposes of this section—
(1) The rules of § 1.937-1 will apply for determining whether an individual is a bona fide resident of Puerto Rico; and
(2) The rules of § 1.937-2 will apply for determining whether income is from sources within Puerto Rico.
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Treas. Reg. §1.933-1(e)Effective/applicability date.
Effective/applicability date. Paragraphs (a), (c), (d), and (e) of this section apply to taxable years ending after April 9, 2008.
25 Citing Cases
pensation was derived from a “source[] without the United States,” see sec. 862(a)(3), but it was taxable in the United States because received “for services performed [in Puerto Rico] as an employee of the United States or an[] agency thereof,” see sec. 933(1). Peti- tioner wife received a taxable pension distribution of $10,380; SO2 treated this distribution as sourced in Puerto Rico, and respondent does not dispute that treat- ment for purposes of this case. Summing these amounts produces for
Under the heading "Where do you file", for each year the instructions state that "All APO, FPO addresses, American Samoa, nonpermanent residents ofGuam or the Virgin Islands, Puerto Rico (or ifexcluding income under Internal Revenue Code section 933), dual-status aliens, a foreign country: U.S.
sident ofPuerto Rico is not exempt from self-employmenttax. See sec. 1401; sec. 1.1402(a)-9, Income Tax Regs. Residents ofPuerto Rico are required to compute net earnings from self-employment in the same manner as a U.S. individual without regard to section 933. See sec. 1402(a)(6); sec. 1.1402(a)-9, Income Tax Regs.; see also sec. 1.1402(a)-1, Income Tax Regs. (defining the term "net earnings from self-employment" to include the gross income derived in a taxpayer's trade or business less the de
Under the heading “Where do you file”, for each year the instructions state that “All APO, FPO addresses, American Samoa, nonpermanent residents of Guam or the Virgin Islands, Puerto Rico (or if excluding income under Internal Revenue Code section 933), dual-status aliens, a foreign country: U.S.
Under the heading "Where do you file", for each year the instructions state that "All APO, FPO addresses, American Samoa, nonpermanent residents ofGuam or the Virgin Islands*, Puerto Rico (or ifexcluding income under Internal Revenue Code section 933), dual-status aliens, a foreign country: U.S.
Under the heading “Where do you file”, for each year the instructions state that “All APO, FPO addresses, American Samoa, nonpermanent residents of Guam or the Virgin Islands*, Puerto Rico (or if excluding income under Internal Revenue Code section 933), dual-status aliens, a foreign country: U.S.
individual without regard to section 933 .j See sec .
933(a), 111 Stat. 881 (enacting section 1301), the conferees stated: "the provision [sec. 1301] does not apply for purposes of the alternative minimum tax under section 55." H.