2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART II - Income Taxes (§§ 30041 — 30622) › Chapter 1013 - Other Special Taxpayers (§§ 30501 — 30622) › Subchapter D - Special Partnerships and Partners (§§ 30551 — 30578) › § 30567 - Determination of adjusted basis of partner’s interest

(a) General rule. — The adjusted basis of a partner’s interest in a special partnership shall be the basis of said interest, determined under subsection (b), (c), or (d) of this section, increased by the items described in clause (1) and reduced by the items described in clause (2).
(1) Increases to the basis. — The adjusted basis of the partner’s interest in a special partnership shall be increased by:
(A) The incomes and profits described in clauses (1)—(5) and (9)—(11) of § 30556(a) of this title.
(B) the income exempt under the provisions of this part or under the provisions of any other law that grants total or partial tax exemption with respect to income derived from its operations, and
(C) the amount of deductions from agriculture income granted by § 30132 of this title.
(2) Reductions to the basis. — The adjusted basis of a partner’s interest in a special partnership shall be reduced (but not below zero) by the following items:
(A) The partner’s distributive share from the losses of the special partnership allowed as a deduction under § 30556(a) of this title;
(B) the distributions made by the special partnership, as provided in § 30568 of this title;
(C) the amount of credits of § 30578 of this title, § 6013(a) of Title 23, and Section 14 of the Puerto Rico Investment Capital Funds Act, as amended, or by any other law that grants credits of a similar nature;
(D) the withholdings at source of §§ 30279 and 30280 of this title, and
(E) any expense of the special partnership not allowable as a deduction upon determining its net income and that is not capitalizable.
(b) Basis of contributing partner’s interest in the special partnership. — The basis of a partner’s interest in a special partnership acquired by a contribution of money or other property shall be the amount of money contributed or the adjusted basis of such other property to the contributing partner at the time of the contribution.
(c) Basis of partner’s interest when property subject to liens or flexible or accelerated depreciation is contributed. —
(1) Property subject to liens. — When the property contributed to the special partnership is subject to an obligation or lien from which the contributing partner is discharged, the basis of the partner’s interest shall be the adjusted basis of such property to the partner at the time of contribution, reduced by the amount of that portion of the obligation or lien from which the contributing partner is discharged and increased by any gain recognized to the contributing partner at such time.
(2) Flexibly depreciated property. — When the contributed property has been flexibly depreciated, the basis of the partner’s interest shall be equal to the flexibly adjusted basis (as defined in § 30181(d)(2) of this title) of the contributed property, increased by any gain or decreased by any loss recognized in the contribution.
(3) Property subject to accelerated depreciation. — When the contributed property has been subject to accelerated depreciation, the basis of the partner’s interest 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.
(d) Basis of interest in the special partnership not acquired by contribution to the special partnership. — The basis of a partner’s interest in a special partnership that has not been acquired by contribution to the special partnership shall be determined in accordance with the provisions of § 30142 of this title.
History —Jan. 31, 2011, No. 1, § 1114.17, retroactive to Jan. 1, 2011.