Partners’ Allocable Shares Clause Samples
The "Partners’ Allocable Shares" clause defines how profits, losses, and other tax-related items are distributed among the partners in a partnership. Typically, this clause outlines the specific percentages or formulas used to allocate income, deductions, credits, and other financial items to each partner, often based on their ownership interests or as otherwise agreed in the partnership agreement. By clearly specifying these allocations, the clause ensures that each partner receives their fair share of the partnership’s financial results and that tax reporting is handled accurately, thereby preventing disputes and ensuring compliance with tax regulations.
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Partners’ Allocable Shares. Except as otherwise provided in this Agreement, each party's allocable share of Partnership income, gain, loss, deductions and credits shall be determined by the use of any method prescribed or permitted by the Secretary of the Treasury by regulations or other guidelines and selected by the Managing General Partner which takes into account the varying interests of the parties in the Partnership during the taxable year. In the absence of such regulations or guidelines, except as otherwise provided in this Agreement, the allocable share shall be based on actual income, gain, loss, deductions and credits economically accrued each day during the taxable year in proportion to each party's varying interest in the Partnership on each day during the taxable year.
Partners’ Allocable Shares. Except as otherwise provided in this Agreement, the Partners agree that each party’s allocable share of Partnership income, gain, loss, deductions and credits shall be determined for a taxable year of the Partnership by using any method that is prescribed or permitted by the Secretary of the Treasury by regulations or other guidelines and selected for that taxable year by the Managing General Partner which takes into account the varying interests of the parties in the Partnership during the taxable year.