§ 7-60-107. Partnership Determined – How

1. In determining whether a partnership exists these rules shall apply:
   1. Except as provided by section 7-60-116, 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 such co-owners do or do not 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 the person is a partner in the business, but no such inference shall be drawn if such profits were received in payment:
      1. As a debt by installments or otherwise;
      2. As wages of an employee or rent to a landlord;
      3. As an annuity to a surviving spouse or representative of a deceased partner;
      4. As interest on a loan, though the amount of payment varies with the profits of the business;
      5. As the consideration for the sale of a goodwill of a business or other property by installments or otherwise.

Source: L. 31: p. 647, § 7. CSA: C. 123, § 7. CRS 53: § 104-1-7. C.R.S. 1963: § 104-1-7. L. 77: (1)(d)(III) amended, p. 294, § 1, effective July 1. L. 2004: IP(1)(d) amended, p. 1422, § 70, effective July 1.