Curative Reallocations Regarding Payments to Members. To the extent that compensation paid to any Member by the Company ultimately is not determined to be a guaranteed payment under Code Section 707(c) or a payment other than in his capacity as a Member pursuant to Code Section 707(a), the Member shall be specially allocated gross income of the Company in an amount equal to the amount of such compensation, and the Member’s Capital Account shall be adjusted to reflect the payment of such compensation. If the Company’s gross income for a Fiscal Year is less than the amount of such compensation paid in such year, the Member shall be specially allocated gross income of the Company in the succeeding year or years until the total amount so allocated equals the total amount of such compensation.
Appears in 5 contracts
Samples: Operating Agreement (Diamond Resorts Corp), Operating Agreement (Diamond Resorts Corp), Operating Agreement (Diamond Resorts Parent, LLC)
Curative Reallocations Regarding Payments to Members. To the extent ---------------------------------------------------- that compensation paid to any Member by the Company ultimately is not determined to be a guaranteed payment under Code Section 707(c) or a payment other than in his capacity as a Member pursuant to Code Section 707(a), the Member shall be specially allocated gross income of the Company in an amount equal to the amount of such compensation, and the Member’s 's Capital Account shall be adjusted to reflect the payment of such compensation. If the Company’s 's gross income for a Fiscal Year is less than the amount of such compensation paid in such year, the Member shall be specially allocated gross income of the Company in the succeeding year or years until the total amount so allocated equals the total amount of such compensation.
Appears in 1 contract
Samples: Operating Agreement (Switzerland County Development Corp)
Curative Reallocations Regarding Payments to Members. To the extent that compensation paid to any Member by the Company ultimately is not determined to be a guaranteed payment under Code Section 707(c) or a payment other than in his capacity as a Member pursuant to Code Section 707(a), the Member shall be specially allocated gross income of the Company in an amount equal to the amount of such compensation, and the Member’s 's Capital Account shall be adjusted to reflect the payment of such compensation. If the Company’s 's gross income for a Fiscal Year is less than the amount of such compensation paid in such year, the Member shall be specially allocated gross income of the Company in the succeeding year or years until the total amount so allocated equals the total amount of such compensation.
Appears in 1 contract
Curative Reallocations Regarding Payments to Members. To the extent that compensation paid to any Member by the Company ultimately is not determined to be a guaranteed payment under Code Section 707(c) or a payment other than in his capacity as a Member pursuant to Code Section 707(a), the Member shall be specially allocated gross income of the Company in an amount equal to the amount of such compensation, and the Member’s 's Capital Account shall be adjusted to reflect the payment of such compensation. If the Company’s 's gross income for a Fiscal Year is less than the amount of such compensation paid in such year, the Member shall be specially 38 allocated gross income of the Company in the succeeding year or years until the total amount so allocated equals the total amount of such compensation.
Appears in 1 contract
