(a) Increase in the partner’s liabilities. — The assumption by a partner of partnership liabilities shall be treated as a contribution of money by such partner to the special partnership.When a partner assumes partnership liabilities, the basis of his/her interest in the special partnership shall be increased by the amount of the liability assumed.(b) Decrease in partner’s liabilities. — The assumption by the special partnership of a partner’s individual liabilities shall be treated as a distribution of money to the partner. History —Jan. 31, 2011, No. 1, § 1114.22, retroactive to Jan. 1, 2011.
Puerto Rico Legal Code