Re: Discussion of Opportunity Zones with no capital gains taxes in the US

I researched Puerto Rico quite thoroughly a while ago. I think it ended up being 0% capital gains taxes all the way around.

The problem is, you still pay full capital gains taxes on anything you've purchased up to the point of becoming a resident. It's only the capital gains taxes you accrue after becoming a resident that are tax free.

Takes half-year+1day to establish residency. Not too onerous, for someone sitting on a pile of cap gains. Not by half.

But you still have to pay taxes on those capital gains. Only the capital gains you accrue after officially becoming a resident become tax free.

I believe that you are incorrect. As long as you have not had a taxable event (i.e. cashed out), your cost basis is irrelevant.

If you think I am mistaken, a cite would be helpful.