If you’re a bona fide resident of Puerto Rico under Act 60 (or its predecessors), you may need to transition your cost basis tracking from Universal to Per-Wallet tracking. Act 60 may exempt you from paying capital gains tax on appreciation that occurs after your move to Puerto Rico. Learn more about Puerto Rico's crypto tax benefits.
If you haven't completed Act 60 requirements or are still subject to US capital gains tax, follow the steps below to proceed with the transition.
Transition steps for individuals in Puerto Rico subject to US capital gains tax
CoinTracker currently restricts the migration to US-based accounts, which makes Puerto Rico accounts ineligible by default. To work around this, you can switch your account's home country to the US. Follow the below steps:
- Verify and save your current tax settings.
- We recommend taking a screenshot of your tax settings page.
- Download all prior tax reports.
- Take and save screenshots of your tax summary.
- Change your home country from Puerto Rico to the United States in account settings.
- Verify your numbers.
- Your calculations should rerun and your numbers should be the same. If they are not, contact CoinTracker Support.
Completing the Universal to Per-Wallet transition
Once the steps above are complete, you can proceed with the Universal to Per-Wallet transition following the steps in our guide.
You should only revert your home country to Puerto Rico if there is a change in your tax status related to Act 60 or future legislation. When preparing your tax returns, keep in mind that you may need to make Puerto Rico-specific adjustments outside of CoinTracker.
This approach ensures IRS compliance while retaining the benefits of Per-Wallet tracking.
What happens if you miss the transition deadline (Dec. 31, 2024)
If you miss the IRS deadline to select a tax lot allocation method, you can still complete the transition, but you won't qualify for the IRS safe harbor. This means your prior tax filings could be subject to recalculation during an audit.
Read our full guide on what to do if you miss the deadline.
Why this process matters
CoinTracker's US-Puerto Rico restriction exists because many Puerto Rico residents qualify for zero capital gains tax under Act 60. However, if you don't meet Act 60 requirements, bypassing this restriction ensures IRS compliance and prepares you for 2025 tax filings.
Disclaimer: This post is informational only and is not intended as tax advice. For tax advice, please consult a tax professional.