2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART III - Decedent’s Estate and Gifts (§§ 31001 — 31176) › Chapter 1022 - Decedent’s Estate; Residents of Puerto Rico (§§ 31011 — 31044) › Subchapter B - Gross Decedent’s Estate (§§ 31021 — 31023) › § 31022 - Valuation of property includible in gross decedent’s estate

(a) In general. — The value of any property includible in the gross estate of a decedent in §§ 31021 and 31063 of this title, shall be the market value at the time of death of the decedent. Market value shall be understood to be the price that a person who wishes to buy a property would be willing to pay to a person who wishes to sell, when both these persons are acting freely and with full knowledge of all relevant factors regarding the property subject to appraisal, if such property were to be offered for sale in a free market.
(b) Valuation of corporate stock and securities. —
(1) Those sold in recognized stock markets. — Their value shall be, for purposes of this chapter, the average between the highest and the lowest sales price as quoted in recognized stock markets at the time of death of the decedent. If at the time of death of the decedent no prices have been quoted, but within reasonable periods preceding and following that date there were quotations and sales for such stock and securities, then their value shall be the inversely weighted average resulting from the highest and the lowest average prices paid for such stock and securities on the closest dates preceding and following the time of death of the decedent, to be computed based on the security market days comprised within such time lapse.
(2) Those not sold in recognized stock exchanges. — Their value shall be that their value known in the market. If unknown, they shall be assigned their value in the accounting books of the issuing corporation as it appears in the corporation’s financial statement at the normal close of operations nearest to the time of death of the decedent, prepared according to generally accepted accounting principles and certified by a certified public accountant. The [administrator,] executor or trustee shall be offered the choice to determine the value based on the valuation corporate assets plus its profit, deducting its liabilities and the value of preferred stock, if any, and dividing the valuation’s remainder by the number of common shares, in order to determine the value of each common share. As to individual businesses and partnerships that represent family businesses, a similar method shall be used for the valuation of the business, except that assets shall be valued as a single unit.
(3) Recognized stock exchanges. — The term “recognized stock exchanges” means all stock exchanges authorized to operate as such by any government or entity empowered to authorize their operation.
(c) Valuation of other property. — Any kind of property that has not been specifically described in the preceding subsections of this sections shall be valued by using the general principles established in the valuation practice, taking into account all such relevant factors as the Secretary may determine by regulation.
History —Jan. 31, 2011, No. 1, § 2022.02, retroactive to Jan. 1, 2011.