Common use of Allocation of Tax Items Clause in Contracts

Allocation of Tax Items. To the extent permitted y section 1.704-1(b)(4)(i) of the Treasury Regulations, all items of income, gain, loss and deduction for federal and state income tax purposes shall be allocated to the Members in accordance with the corresponding book items thereof; however, all items of income, gain, loss and deduction with respect to Assets to which there is a difference between book value and adjusted tax basis shall be allocated in accordance with the principles of section 704(c) of the Code and section 1.704-1(b)(4)(i) of the Treasury Regulations, if applicable.