P.R. Laws tit. 7, § 1255
(a) Every gain in the sale, exchange or other disposition other than a transfer through a gift or legacy, of an investment in eligible proprietary interests in an investment capital fund or a designated entity, including the transfer of eligible proprietary interests in a fund caused by the fund’s total liquidation, shall be deemed as a capital gain and will be taxed pursuant to the provisions of § 1252 of this title.
(b) Notwithstanding the provisions of subsection (a), in the event the total product of the sale, exchange or other disposition that is not a transfer by gift or legacy is reinvested in eligible proprietary interests of another fund or a designated entity within the term of ninety (90) days from the day of said sale, exchange or other disposition, the gain shall not be subject to income taxes.
(c) When the sale or exchange of an investment in eligible proprietary interests in a fund or a designated entity results in the nontaxation of the gain derived by the sale or exchange of the investment in eligible proprietary interests in the fund or the designated entity pursuant to subsection (b), the adjustments to the base shall include a reduction for an amount equal to that of the gain not acknowledged in the sale of the investment in eligible proprietary interests in the fund or a designated entity upon determining the adjusted base of the new eligible proprietary interests in a fund or a designated entity acquired by the investor on any date following the sale of the investment in eligible proprietary interests in the investment capital fund or the designated entity.
History —Oct. 6, 1987, No. 3, p. 840, § 15, renumbered as § 16 and amended on July 11, 1996, No. 70, § 16.