P.R. Laws tit. 13, § 30540
(a) General rule. — The basis of the internal capital accounts of regular, special or corporate members, with regards to the payment of the certificate of membership in a special employee-owned corporation through property contribution, shall be the adjusted basis on said property for the member in question at the time of the contribution.
(b) Exceptions. —
(1) Flexibly depreciated property. — When the property contributed to the special employee-owned corporation has been flexibly depreciated, the basis of the internal capital account of the regular, special or corporate member shall be equal to the flexibly adjusted basis (as defined in § 30181(d)(2) of this title) of the contributed property, increased by the gain or decreased by the loss recognized in the contribution.
(2) Property subject to accelerated depreciation. — When the property contributed to the special employee-owned corporation has been subject to accelerated depreciation, the basis of the internal capital account of the regular, special or corporate member shall be equal to the contributed property basis, decreased by the depreciation claimed under the accelerated depreciation method, increased by any gain, or decreased by any loss recognized in the contribution.
(3) Property subject to encumbrance. — When the property contributed to the special employee-owned corporation is subject to liabilities or encumbrances from which the transferor is discharged, the basis of the internal capital account of the regular, special or corporate member shall be the adjusted basis on such property for that particular member at the time of the contribution, increased by the recognized gain to the contributing member or decreased by the amount of the part of the liability or encumbrance from which such member is discharged as a result of the contribution.
History —Jan. 31, 2011, No. 1, § 1113.10, retroactive to Jan. 1, 2011.