Common use of Reporting as Direct Owners and Not a Partnership Clause in Contracts

Reporting as Direct Owners and Not a Partnership. Each Tenant in Common hereby covenants and agrees to report on his federal and state income tax returns all items of income, deduction and credits which result from his Interests. All such reporting shall be consistent with the exclusion of the Tenants in Common from Subchapter K of Chapter 1 of the Code, commencing with the first taxable year following the execution of this Agreement. Further, each Tenant in Common covenants and agrees not to notify the Commissioner of Internal Revenue that he desires that Subchapter K of Chapter 1 of the Code apply to the Tenants in Common. No Tenant in Common shall file a partnership or corporate tax return, conduct business under a common name, or execute any agreement identifying any or all of the Tenants in Common as partners, shareholders or members of a business entity, or otherwise hold themselves out as partners, shareholders, or members of a business entity.

Reporting as Direct Owners and Not a Partnership. Each Tenant in Common hereby covenants and agrees to report on his federal and state income tax returns all items of income, deduction and credits which result from his Interests. All such reporting shall be consistent with the exclusion of the Tenants in Common from Subchapter K of Chapter 1 of the Code, commencing with the first taxable year following the execution of this Agreement. Further, each Tenant in Common covenants and agrees not to notify the Commissioner of Internal Revenue that he it desires that Subchapter K of Chapter 1 of the Code apply to the Tenants in Common. No Tenant in Common shall file a partnership partnership, corporate, or corporate any other entity tax return, conduct business under a common name, or execute any agreement identifying any or all of the Tenants in Common as partners, shareholders shareholders, or members of a business entity, or otherwise hold themselves out as partners, shareholders, or members of a business entity.