Common use of Allocation for Tax Purposes Clause in Contracts

Allocation for Tax Purposes. (a) For each fiscal year, items of income, deduction, gain, loss or credit shall be allocated for income tax purposes among the Members in such manner as to equitably reflect the amounts credited or debited to each Member's Capital Account for the current and prior fiscal years (or relevant portions thereof). Allocations under this Section 4.09 shall be made by the Managing Member in accordance with the principles of Sections 704(b) and 704(c) of the Code and in conformity with applicable Regulations promulgated thereunder (including, without limitation, Treasury Regulation Sections 1.704-1(b)(2)(iv)(f)(4), 1.704-1(b)(4)(i) and 1.704-3(e)). If any Member redeems all of its Units in the Company during a fiscal year or immediately following the end of a fiscal year, and the Member would (absent this sentence) recognize gain under Section 731 of the Code as a result of such withdrawal, the Managing Member may elect to specially allocate to such Member, for U.S. federal income tax purposes, any capital gains (including short-term capital gains) realized by the Company during such fiscal year, through and including the date of withdrawal, in an amount up to that amount of gain which if so allocated would avoid the Member recognizing gain on the withdrawal under Section 731 of the Code (ignoring for this purpose any adjustments that have been made to the tax basis of the withdrawing Member's Units resulting from any transfers or assignment of the Units (other than the original issue of the Units), including by reason of death). Any such election by the Managing Member shall, to the extent reasonably practicable as determined by the Managing Member in its sole discretion, be applied on an equitable basis to all Members withdrawing during such fiscal year or immediately following the end of such fiscal year.

Allocation for Tax Purposes. (a) For each fiscal year, items of income, deduction, gain, loss or credit shall be allocated for income tax purposes among the Members in such manner as to equitably reflect the amounts credited or debited to each Member's Capital Account for the current and prior fiscal years (or relevant portions thereof). Allocations under this Section 4.09 shall be made by the Managing Member in accordance with the principles of Sections 704(b) and 704(c) of the Code and in conformity with applicable Treasury Regulations promulgated thereunder (including, without limitation, Treasury Regulation Sections 1.704-1(b)(2)(iv)(f)(4), 1.704-1(b)(4)(i) and 1.704-3(e)). If any Member redeems all of its Units in the Company during a fiscal year or immediately following the end of a fiscal year, and the Member would (absent this sentence) recognize gain under Section 731 of the Code as a result of such withdrawal, the Managing Member may elect to specially allocate to such Member, for U.S. federal income tax purposes, any income and capital gains (including short-term capital gains) realized by the Company during such fiscal year, through and including the date of withdrawal, in an amount up to that amount of income and gain which if so allocated would avoid the Member recognizing gain on the withdrawal under Section 731 of the Code (ignoring for this purpose any adjustments that have been made to the tax basis of the withdrawing Member's Units resulting from any transfers or assignment of the Units (other than the original issue of the Units), including by reason of death). Any such election by the Managing Member shall, to the extent reasonably practicable as determined by the Managing Member in its sole discretion, be applied on an equitable basis to all Members withdrawing during such fiscal year or immediately following the end of such fiscal year.

Allocation for Tax Purposes. (a) For each fiscal year, items of income, deduction, gain, loss or credit shall be allocated for income tax purposes among the Members in such manner as to equitably reflect the amounts credited or debited to each Member's Capital Account for the current and prior fiscal years (or relevant portions thereof). Allocations under this Section 4.09 shall be made by the Managing Member in accordance with the principles of Sections 704(b) and 704(c) of the Code and in conformity with applicable Regulations promulgated thereunder (including, without limitation, Treasury Regulation Sections 1.704-1(b)(2)(iv)(f)(4), 1.704-1(b)(4)(i) and 1.704-3(e)). If any Member redeems all of its Units in the Company during a fiscal year or immediately following the end of a fiscal year, and the Member would (absent this sentence) recognize gain under Section 731 of the Code as a result of such withdrawal, the Managing Member may elect to specially allocate to such Member, for U.S. federal income tax purposes, any income and capital gains (including short-term capital gains) realized by the Company during such fiscal year, through and including the date of withdrawal, in an amount up to that amount of income and gain which if so allocated would avoid the Member recognizing gain on the withdrawal under Section 731 of the Code (ignoring for this purpose any adjustments that have been made to the tax basis of the withdrawing Member's Units resulting from any transfers or assignment of the Units (other than the original issue of the Units), including by reason of death). Any such election by the Managing Member shall, to the extent reasonably practicable as determined by the Managing Member in its sole discretion, be applied on an equitable basis to all Members withdrawing during such fiscal year or immediately following the end of such fiscal year.

Allocation for Tax Purposes. (a) For each fiscal year, items of income, deduction, gain, loss or credit shall be allocated for income tax purposes among the Members in such manner as to equitably reflect the amounts credited or debited to each Member's Capital Account for the current and prior fiscal years (or relevant portions thereof). Allocations under this Section 4.09 shall be made by the Managing Member in accordance with the principles of Sections 704(b) and 704(c) of the Code and in conformity with applicable Regulations regulations promulgated thereunder (including, without limitation, Treasury Regulation Sections 1.704-1(b)(2)(iv)(f)(4), 1.704-1(b)(4)(i) and 1.704-3(e)). If any Member redeems all of its Units in the Company during a fiscal year or immediately following the end of a fiscal year, and the Member would (absent this sentence) recognize gain under Section 731 of the Code as a result of such withdrawal, the Managing Member may elect to specially allocate to such Member, for U.S. federal income tax purposes, any income and capital gains (including short-term capital gains) realized by the Company during such fiscal year, through and including the date of withdrawal, in an amount up to that amount of income and gain which if so allocated would avoid the Member recognizing gain on the withdrawal under Section 731 of the Code (ignoring for this purpose any adjustments that have been made to the tax basis of the withdrawing Member's Units resulting from any transfers or assignment of the Units (other than the original issue of the Units), including by reason of death). Any such election by the Managing Member shall, to the extent reasonably practicable as determined by the Managing Member in its sole discretion, be applied on an equitable basis to all Members withdrawing during such fiscal year or immediately following the end of such fiscal year.