26 U.S.C. § 933 — Income from sources within Puerto Rico

submitted 72 years ago by ch. 736 to r/title-26-INTERNAL-REVENUE-CODE · 248 words · no verdicts yet

in plain englishAI-generated · not legal advice

Certain Puerto Rico-source income is excluded from gross income for qualifying residents and for certain citizens who leave Puerto Rico. Related deductions and credits are also limited.

The following items are excluded from gross income and exempt from tax under this subtitle. (1) For an individual who is a bona fide Puerto Rico resident for the entire tax year, Puerto Rico-source income is excluded, except pay for services as a United States employee or an employee of a United States agency. The individual may not deduct, other than the personal-exemption deduction under section 151, or claim a credit for, an item properly assigned to or charged against the excluded income. (2) For a United States citizen who was a bona fide Puerto Rico resident for at least two years before changing residence, Puerto Rico-source income attributable to the part of that period before the change is excluded, except pay for services as a United States employee or agency employee. The individual likewise may not deduct, other than personal exemptions under section 151, or claim a credit for, an item properly assigned to or charged against the excluded income.

the actual law source: uscode.house.gov ↗public domain

The following items shall not be included in gross income and shall be exempt from taxation under this subtitle:

(1) Resident of Puerto Rico for entire taxable year

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.

(2) Taxable year of change of residence from Puerto Rico

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.

Source credit: (Aug. 16, 1954, ch. 736, 68A Stat. 293; Pub. L. 99–514, title XII, § 1272(d)(3), Oct. 22, 1986, 100 Stat. 2594.)

history & why it existsrecord from the source credit

1954Enacted · Act of Aug. 16, 1954, ch. 736
1986Amended · Pub. L. 99-514 · 100 Stat. 2594

A history note hasn’t been published yet. The record shows enactment by ch. 736 on 1954-08-16.

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