P.R. Laws tit. 7, § 3034
The sale, exchange, or any other disposition of proprietary interests in a fund shall be governed by the following norms:
(a) All profits from the sale, exchange or other disposition that is not a transfer by donation or inheritance, of an investment in private proprietary interests in [a] capital investment fund, including the transfer of an investment in private proprietary interests in a fund, due to the total liquidation of the fund, shall be deemed as a capital gain and shall be taxed according to the provisions of § 3031 of this title.
(b) Notwithstanding the provisions of subsection (a) of this section, in the event of reinvesting the total amount of the proceeds of the sale, exchange, or other disposition that is not a transfer by donation or inheritance, in private proprietary interests of another fund within the term of ninety (90) days from the date of said sale, exchange or other disposition, the profits made shall not be recognized as income in said taxable year.
(c) When the sale or exchange of an investment in proprietary interests of a fund results in the non-taxation of the profits made in the sale or exchange of the investment in private proprietary interests in the fund, pursuant to subsection (b) of this section, upon determining the adjusted base of the shares of the new private proprietary interests in a fund acquired by the investor on any date following the sale of the private proprietary interests in the capital investment fund, the adjustments to the base shall include a reduction by an amount equal to that of the non-recognized profits from the sale of the investment of private proprietary interests in the fund.
History —Jan. 28, 2000, No. 46, § 15.