Capital gains for Puerto Rico bona-fide residents

[ΑΩ]

I'm a bona-fide resident of Puerto Rico and I want to use TurboTax to file my federal returns.  Does TurboTax handle capital gains automatically or do I have to make manual adjustments to get it to work correctly?

The correct treatment for capital gains on stocks/bonds is that they are taxable based on residency.  So I need to pay the Hacienda of Puerto Rico and NOT the IRS.

[tagteam]

I'll page Champ @pk

[ΑΩ]

Thanks for your response.

I just tried this:

I input a $10,000,000 capital gain on a cryptocurrency.  The federal tax liability should be $0 for a bona fide Puerto Rico resident, but the software is showing a $4mm+ federal tax liability.  This is categorically WRONG.  (The capital gains liability is due to the Hacienda of Puerto Rico, not the IRS.)

What should I do?  Should I report it as a software error?  Or should I input the information in a way that computes the correct tax liability?

[BillM223]

Please see this answer from Ernie on Puerto Rican taxation.

As for your second question, you are responsible for the final return, not your input, so if necessary (I am not sure that it is in this case - see's Ernie's answer above), adjust the input to make the numbers come out the way you want (and which are legal).

[BillM223]

To clarify point 1, since TurboTax does not support Puerto Rican returns, the behavior you report on cryptocurrency is not an error.