P.R. Laws tit. 13, § 30575
2019-02-20 00:00:00+00
(a) General rule. — Payments made to a retiring partner or the successors of a deceased partner shall be considered:
(1) As a distributive share to the recipient of special partnership income, if the amount thereof is determined with regard to the special partnership’s income, or
(2) as a secured payment, if the amount is determined without regard to the special partnership’s income.
(b) The Secretary shall determine by regulations the circumstances in which such payments shall be treated as a distribution by the special partnership in exchange for the interest of such partner and not as a distributive share or secured payments under subsection (a).
History —Jan. 31, 2011, No. 1, § 1114.25, retroactive to Jan. 1, 2011.