Common use of PRECONTRIBUTION GAIN Clause in Contracts

PRECONTRIBUTION GAIN. The Partnership shall use the remedial method of allocation contained in Section 1.704-3(d) of the Regulations to take into account any variation between the adjusted basis and the fair market value of the Initial LP Contributed Property and the Contributed Debt at the time of the contribution ("Precontribution Gain"). By executing this Agreement, each partner hereby agrees to report income, gain, loss and deduction on such Partner's federal income tax return in a manner that is consistent with the use of the remedial method of allocation with respect to the Initial LP Contributed Property and the Contributed Debt. With respect to any Contributed Property other than the Initial LP Contributed Property and the Contributed Debt, the Partnership shall use any permissible method contained in the Regulations promulgated under Section 704(c) of the Code selected by the General Partner, in its sole discretion, to take into account any variation between the adjusted basis of such asset and the fair market value of such asset as the time of the contribution, provided that such method does not cause 200 Xxxx Xxxxxx Associates (or its successor by merger) or its members any material adverse income tax consequences. Each Partner hereby agrees to report income, gain, loss and deduction on such Partner's federal income tax return in a manner consistent with the method used by the Partnership.

PRECONTRIBUTION GAIN. The Partnership shall use the remedial method of allocation contained in Section 1.704-3(d) of the Regulations to take into account any variation between the adjusted basis and the fair market value of the Initial LP Contributed Property and the Contributed Debt at the time of the contribution ("Precontribution Gain"). By executing this Agreement, each partner Partner hereby agrees to report income, gain, loss and deduction on such Partner's federal income tax return in a manner that is consistent with the use of the remedial method of allocation with respect to the Initial LP Contributed Property and the Contributed Debt. With respect to any Contributed Property other than the Initial LP Contributed Property and the Contributed Debt, the Partnership shall use any permissible method contained in the Regulations promulgated under Section 704(c) of the Code selected by the General Partner, in its sole discretion, to take into account any variation between the adjusted basis of such asset and the fair market value of such asset as of the time of the contribution, provided that such method does not cause 200 Xxxx Xxxxxx Associates 237 Park Avenue Associatex (or its successor xx xxx xxxxxssor by merger) or its members any material adverse income tax consequences. Each Partner hereby agrees to report income, gain, loss and deduction on such Partner's federal income tax return in a manner consistent with the method used by the Partnership.