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 C - Taxable Decedent’s Estate (§§ 31031 — 31038) › § 31035 - Deductions of bequest or legacies for public, charitable or religious purposes

(a) In general. — For purposes of the tax imposed by § 31011 of this title, the taxable decedent’s estate shall be determined by deducting from the gross decedent’s estate the amount of any bequest or legacy made:
(1) To or for the use of the Government of the United States, the Government of Puerto Rico, their agencies and instrumentalities, or any political subdivision thereof, exclusively for public purposes.
(2) To or for the use of a corporation, association or trust organized and operated exclusively for religious, charitable, scientific, museologic, veteran rehabilitation services, literary or educational purposes, including the encouragement of arts and the prevention of domestic violence, hate crimes or child, elderly, or animal abuse, which operates in Puerto Rico and whose net earnings do not inure to the benefit of any shareholder or private individual, and whose activities by no means include furthering propaganda or proselytism of a political-partisan nature or in favor or against any candidate for any elective office, insofar as the entity qualifies as an entity exempt from income taxes under §§ 30041 et seq. of this title or the United States Internal Revenue Code.
(3) To a trustee or trustees, a foundation or a society, an order or a brotherly association that operates under the lodge system, insofar as such bequests or legacies are to be used by such trustee or trustees, or by such society, order, or fraternal association, exclusively for religious, charitable, scientific, museologic, veteran rehabilitation services, literary or educational purposes, including the encouragement of art and the prevention of domestic violence, hate crimes or child, elderly or animal abuse, which operates in Puerto Rico, whose activities by no means include intervening in or furthering propaganda or proselytism of a political-partisan nature or in favor or against any candidate for any elective office, insofar as the entity qualifies as an entity exempt from income taxes under §§ 30041 et seq. of this title or the United States Internal Revenue Code.
(4) To or for the use of war veteran posts or organizations, or auxiliary units or societies of any such posts or organizations, insofar as such posts, organizations, units or societies are organized in Puerto Rico or the United States or in any of its possessions, and if no part of its net earnings inures to the benefit of any shareholder or private individual.
(b) Payable inheritance taxes on account of bequests or legacies. — If the taxes imposed by § 31011 of this title or any other taxes on the decedent’s estate, patrimony, legacy or inheritance are on account of the last will and testament’s terms or the laws in the jurisdiction where the patrimony is administered or the laws of the jurisdiction that levies the taxes in question—payable in whole or in part from the bequests or legacies, which are otherwise deductible under this section, the amount deductible under this section shall be the total sum of such bequests or legacies, minus the amount of such taxes.
(c) Limitation on the deduction. — The amount of the deduction granted under this section shall not exceed the value of the property transferred through bequest or legacy that is includible in the gross decedent’s estate, as required under this chapter. No amount whatsoever pertaining to bequests or legacies made to organizations mentioned in this section shall not be admissible as a deduction if the Secretary finds that such organizations conduct or have conducted prohibited transactions within the meaning of such term in §§ 30412(F)(2) and 30486 of this title.
(d) Future interests. — If the bequest or legacy otherwise deductible under this section consists, in whole or in part, of future interests, no deduction shall be granted under this section for the portion of the total sum of such bequest or legacy which pertains to such future interests.
History —Jan. 31, 2011, No. 1, § 2023.05, retroactive to Jan. 1, 2011.