Common use of Allocation for Tax Purposes Clause in Contracts

Allocation for Tax Purposes. For purposes of this agreement and for federal, state and local income tax purposes, income, deductions, losses and credit to the partnership shall be allocated equally among the partners who are partners on the last day of the fiscal year; provided, however, that in the event of a transfer of interest or the admission or withdrawal of a partner during the fiscal year, then such allocation shall be made on a pro rata basis in accordance with the varying interest of such parties during the fiscal year of the partnership.