8312 - Rules for determining the existence of a partnership. - Pennsylvania Statutes

§ 8312. Rules for determining the existence of a partnership. In determining whether a partnership exists, these rules shall apply: (1) Except as provided by section 8328 (relating to partner by estoppel), persons who are not partners as to each other are not partners as to third persons. (2) Joint tenancy, tenancy in common, tenancy by the entireties, joint property, common property or part ownership does not of itself establish a partnership whether or not the co-owners share any profits made by the use of the property. (3) The sharing of gross returns does not of itself establish a partnership whether or not the persons sharing them have a joint or common right or interest in any property from which the returns are derived. (4) The receipt by a person of a share of the profits of a business is prima facie evidence that he is a partner in the business, but no such inference shall be drawn if the profits were received in payment: (i) As a debt by installments or otherwise. (ii) As wages of an employee or rent to a landlord. (iii) As an annuity to a surviving spouse or representative of a deceased partner. (iv) As interest on a loan though the amount of payment varies with the profits of the business. (v) As the consideration for the sale of the goodwill of a business or other property by installments or otherwise.