Solomon Blum Heymann LLP partner William L. Blum conducted a video interview on January 20, 2016, with Cherif Medawar, a real estate investor, hedge fund manager, and host of educational retreats relating to real estate investing. Mr. Blum’s interview, which took place at the Waldorf Astoria Hotel in New York City, was for the purpose of explaining Puerto Rico’s tax exemption programs known as Act 20 and Act 22.
In the thirty minute video (which may be viewed here in its entirety), Blum explains how the Puerto Rico tax exemption programs operate and he describes the potential benefits and pitfalls of participation in the programs as well as appropriate investment structures. Blum’s explanations and examples are geared toward real estate investors but they have general applicability to various types of service related businesses that can be established or relocated to Puerto Rico and the U.S. Virgin Islands.
Blum regularly advises clients on the U.S. federal tax aspects of establishing Puerto Rico Act 20 companies and how U.S. taxpayers can take advantage of the 90% to 100% exemptions from federal taxes that the unique Act 20 and Act 22 tax exemption programs offer. Blum’s background includes over thirty-five years of professional experience in U.S. territorial tax systems, including those in Puerto Rico and the U.S. Virgin Islands. Blum, a former counsel to the Governor of the U.S. Virgin Islands, drafted several of the tax exemption laws in that U.S. territory. He regularly represents taxpayers on federal tax matters including disputes with the IRS on matters relating to U.S. territorial residency and tax exemption programs.