P.R. Laws tit. 13, § 30559
(a) General rule. — No gain or loss shall be recognized to a special partnership or to any of its partners in the case of a contribution of money or other property to the special partnership, in exchange for an interest in the special partnership, except as provided in subsections (b) and (c).
(b) Flexibly depreciated property. — Except as provided in § 30581(c) of this title, in the case of a contribution of flexibly depreciated property, no gain or loss shall be recognized to a special partnership or to any of its partners unless opted otherwise. The option to recognize gain or loss with respect to such contribution shall be irrevocable.
(c) Property subject to liability or lien. — In the case of a contribution of property subject to a liability or lien, which is assumed by the special partnership, gain shall be recognized to the contributing partner to the extent in which the part of the liability or lien from which he/she is discharged exceeds the adjusted basis for the contributing partner on the contributed property.
History —Jan. 31, 2011, No. 1, § 1114.09, retroactive to Jan. 1, 2011.