Common use of Allocations for Income Tax Purposes Clause in Contracts

Allocations for Income Tax Purposes. (a) Except as otherwise required by Code section 704(c), items of income, gain, deduction, loss or credit that are recognized for United States federal, state and local income tax purposes in each Fiscal Year are allocated among the Members in such manner as to reflect equitably amounts credited to or debited against each Member’s Capital Account, whether in such Fiscal Year or in prior Fiscal Years. To this end, the Company shall establish and maintain records that show the extent to which the Capital Account of each Member, as of the last day of each Fiscal Year, consists of amounts that have not been reflected in the taxable income of such Member. (b) In the event the Gross Asset Value of any Company asset is adjusted pursuant to the definition of “Gross Asset Value,” subsequent allocations of income, gain, loss and deduction with respect to such asset shall take account of any variation between the adjusted basis of such asset for United States federal income tax purposes and its Gross Asset Value in the same manner as under Code section 704(c) and the Regulations thereunder.

Allocations for Income Tax Purposes. (a) Except as otherwise required by Code section 704(c), items of income, gain, deduction, loss or credit that are recognized for United States federal, state and local income tax purposes in each Fiscal Year are allocated among the Members Partners in such manner as to reflect equitably amounts credited to or debited against each MemberPartner’s Capital Account, whether in such Fiscal Year or in prior Fiscal Years. To this end, the Company Partnership shall establish and maintain records that show the extent to which the Capital Account of each MemberPartner, as of the last day of each Fiscal Year, consists of amounts that have not been reflected in the taxable income of such MemberPartner. (b) In the event the Gross Asset Value of any Company Partnership asset is adjusted pursuant to the definition of “Gross Asset Value,” subsequent allocations of income, gain, loss and deduction with respect to such asset shall take account of any variation between the adjusted basis of such asset for United States federal income tax purposes and its Gross Asset Value in the same manner as under Code section 704(c) and the Regulations thereunder.