Common use of Depreciation Recapture Clause in Contracts

Depreciation Recapture. If Profits to be allocated pursuant to Section E.2 or items of gross income to be allocated pursuant to Section E.3(a) includes income treated as ordinary income or “unrecaptured section 1250 gain” (as defined in Section 1(h)(6) of the Code) for U.S. federal income tax purposes because it is attributable to the recapture of Depreciation, such Profits or items of gross income shall be allocated to the Members, to the extent possible, in proportion to their prior Depreciation allocations which gave rise to such recapture.

Depreciation Recapture. If Profits to be allocated pursuant to Section E.2 5.2 or items of gross income to be allocated pursuant to Section E.3(a5.3(a) includes income treated as ordinary income or “unrecaptured section 1250 gain” (as defined in Section 1(h)(6) of the Code) for U.S. federal income tax purposes because it is attributable to the recapture of Depreciation, such Profits or items of gross income shall be allocated to the MembersStockholders, to the extent possible, in proportion to their prior Depreciation allocations which gave rise to such recapture.