Puerto Rico capital gains tax calculator: long-term and short-term gains

It depends on how long you held the asset. A gain on capital property held more than one year pays the special 15% of section 1023.02 of the 2011 Code, computed on the excess of net long-term gain over the short-term net capital loss, with an election for the normal rates when those are lower. A gain on property held one year or less gets no preferential rate: it joins your taxable income and pays the ordinary scale, which runs 0% to 33%.

More than one year, for sales or exchanges after 30 June 2014 (2011 Code section 1034.01(a)). One year or less is short-term. The edge is strict: a sale exactly one year after the purchase is short-term, and the sale the following day is long-term. Before 1 July 2014 the edge was six months, which matters only for very old disposals.

Yes, within the Code's limits. Losses offset the year's capital gains first, short- and long-term together. What exceeds the gains can be deducted against other income only up to the lesser of net income or $1,000, and the rest carries forward as a short-term loss for seven tax years. A later year can use the carried loss only up to 90% of that year's net capital gain.

No. Puerto Rico taxes under its own code: one flat preferential rate, 15%, on the qualifying long-term gain, with no 0% band and no 20% top band for individuals. The 20% figure that appears in some summaries is the corporate alternative rate of section 1023.03, and the U.S. federal schedule never applies to a Puerto Rico resident's Puerto Rico-source gain.

Puerto Rico taxes a resident individual's capital gains under its own code. Long-term capital property (held more than one year, 2011 Code §1034.01(a)(4)) sold after June 30, 2014 pays the special 15% of §1023.02(a) on the excess of net long-term capital gain over net short-term net capital loss, or, at the taxpayer's election, the normal §1021.01 rates when those are more favorable ('lo que sea más beneficioso para el contribuyente'). The 15% is flat: the individual schedule carries no income bands, no 0% band and no 20% top band (the 10% in the same subsection applied to sales before July 1, 2014, and the 20% of §1023.03 is the corporate alternative tax). Verified against the OGP compilation Rev. 28 May 2026, fetched 2026-09-30.

Short-term gains (held one year or less) are ordinary income: they stack on the §1021.01 scale (brackets, gradual adjustment and 95%/92% factors carried in the income-tax record). The holding period edge is strict: property held 'no más de ... un (1) año' is short-term (§1034.01(a)(2)) and 'más de ... un (1) año' is long-term (§1034.01(a)(4)), so a sale on the one-year anniversary is short-term and the day after is long-term (for sales after June 30, 2014).

Loss netting (2011 Code §1034.01): gains and losses net within each bucket first ((a)(6)-(9)); the §1023.02 base then nets the short-term net capital loss against the long-term net capital gain; a long-term net loss offsets short-term gains under the overall (c)(2) limitation. Current-year capital losses are allowed only up to the year's capital gains, plus the excess deductible against other income to the lesser of net income (computed without capital gains/losses, (c)(3)) or $1,000 ((c)(2)(A)-(B)).

Capital-loss carryforward (2011 Code §1034.01(d)): a net capital loss of a year beginning after December 31, 2012 is carried forward as a SHORT-TERM capital loss for the seven succeeding tax years ((d)(3)); for years beginning after December 31, 2018 the carried loss is usable only up to 90% of the year's net capital gain ((d)(5), computed without the carried loss per (d)(6)). The seven-year clock is the taxpayer's own to respect; the calculator carries one pooled figure.

Alternate basic tax: the individual ABT of §1021.02(a)(1)(D) (1% over $25,000 up to 24% over $250,000, schedule carried in the income-tax record) applies in lieu of the other taxes when greater, and the comparison base includes the §1023.02 special tax (§1021.02(a)(3) with Subcapítulo C of Chapter 2), so a large long-term gain can be taxed up to the 24% ABT band. The ABT floor is computed on the year's income with the gains included; the code's itemized AMTI reductions are not modelled, which can only understate the ABT.

Residency: a 'resident individual' is domiciled in Puerto Rico, presumed when present 183 days in the calendar year (2011 Code §1010.01(a)(30)). The calculator computes the resident rules; an Act 60-2019 resident-investor decree changes them (post-residency appreciation exempt before 2036 for applications filed by December 31, 2026) and is surfaced as checklist advice, never computed. Nonresident treatment is outside the calculator.

Basis: gain is amount realized over adjusted basis, cost being the unadjusted basis (2011 Code §§1034.02-1034.03); gift property acquired after December 31, 2017 generally carries the donor's basis and inherited property the decedent's basis at death. Puerto Rico has no federal-style wash-sale rule; do not import one. The principal-residence exclusion of §1023.01 and the business/depreciable-property rules are not computed: the calculator taxes every entered asset as a capital asset by holding period.