Minimum Gain Chargebacks and Nonrecourse Deductions Sample Clauses
The "Minimum Gain Chargebacks and Nonrecourse Deductions" clause governs how certain tax-related allocations are handled in a partnership, specifically those involving nonrecourse liabilities and deductions. It ensures that if the partnership has deductions or losses funded by nonrecourse debt (debt for which no partner is personally liable), and those deductions create a minimum gain, any subsequent reduction in that gain is allocated back to the partners who benefited from the deductions. This mechanism is designed to comply with IRS regulations, ensuring that tax benefits and liabilities are fairly distributed among partners and preventing any partner from unduly benefiting from nonrecourse deductions without corresponding income allocations.
Minimum Gain Chargebacks and Nonrecourse Deductions. Notwithstanding any other provision of this Agreement:
Minimum Gain Chargebacks and Nonrecourse Deductions. 4.6.1 Notwithstanding any other provisions of this Agreement, in the event there is a net decrease in Company Minimum Gain during a Fiscal Year, the Members shall be allocated items of income and gain (computed with the adjustments set forth in the definition of “Net Profits” and “Net Losses”) in accordance with Treasury Regulations Section 1.704-2(f). For purposes of this Agreement, the term “Company Minimum Gain” shall mean “partnership minimum gain” as set forth in Treasury Regulations Section 1.704-2(b)(2), and any Member’s share of Company Minimum Gain shall be determined in accordance with Treasury Regulations Section 1.704-2(g)(1). This Section 4.6.1 is intended to comply with the minimum gain charge back requirement of Treasury Regulations Section 1.704-2(f) and shall be interpreted and applied in a manner consistent therewith.
Minimum Gain Chargebacks and Nonrecourse Deductions. (a) Notwithstanding any other provisions of this Agreement, in the event there is a net decrease in Company Minimum Gain during a fiscal year, the Members shall be allocated items of income and gain (computed with the adjustments set forth in clauses (i), (ii), (iii), (iv), (vii) and (viii) of the definition of "Net Profits" and "Net Losses") in accordance with Treasury Regulations Section 1.704-2(f). For purposes of this Agreement, the term "Company Minimum Gain" shall mean "partnership minimum gain" as set forth in Treasury Regulations Section 1.704-2(b)(2), and any Member's share of Company Minimum Gain shall be determined in accordance with Treasury Regulations Section 1.704-2(g)(1). This Section 4.6(a) is intended to comply with the minimum gain charge-back requirement of Treasury Regulations Section 1.704-2(f) and shall be interpreted and applied in a manner consistent therewith.
Minimum Gain Chargebacks and Nonrecourse Deductions