Common use of Section 704(b) Allocations Clause in Contracts

Section 704(b) Allocations. (i) Each item of income, gain, loss, deduction or credit for Federal income tax purposes that corresponds to an item of income, gain, loss or expense that is either taken into account in computing Profit or Loss or is specially allocated pursuant to Section 7.3 hereof (a “Book Item”) shall be allocated among the Partners in the same proportion as the corresponding Book Item is allocated among them pursuant to Section 7.2 or 7.3 hereof. (ii) If the Partnership recognizes Depreciation Recapture (as defined below) in respect of the sale of any Partnership asset, (1) the portion of the gain on such sale which is allocated to a Partner pursuant to Section 7.2 or 7.3 hereof shall be treated as consisting of a portion of the Partnership’s Depreciation Recapture on the sale and a portion of the balance of the Partnership’s remaining gain on such sale under principles consistent with Regulations Section 1.1245-1; and (2) if, for Federal income tax purposes, the Partnership recognizes both “unrecaptured Section 1250 gain” (as defined in Code Section 1(h)) and gain treated as ordinary income under Code Section 1250(a) in respect of such sale, the amount treated as Depreciation Recapture under Section 7.6(a)(ii)(1) shall be comprised of a proportionate share of both such types of gain.

Section 704(b) Allocations. (i) Each item of income, gain, loss, deduction or credit for Federal U.S. federal income tax Tax purposes that corresponds to an item of income, gain, loss or expense that is either taken into account in computing Profit Net Income or Net Loss or is specially allocated pursuant to Section 7.3 hereof 4.4 (a “Book Item”) shall be allocated among the Partners Members in the same proportion as the corresponding Book Item is allocated among them pursuant to Section 7.2 4.3 or 7.3 hereofSection 4.4. (ii) (A) If the Partnership Company recognizes Depreciation Recapture (as defined below) in respect of the sale of any Partnership Company asset,: (1I) the portion of the gain on such sale which is allocated to a Partner Member pursuant to Section 7.2 4.3 or 7.3 hereof Section 4.4 shall be treated as consisting of a portion of the PartnershipCompany’s Depreciation Recapture on the sale and a portion of the balance of the PartnershipCompany’s remaining gain on such sale under principles consistent with Regulations Section 1.1245-1; and (2II) if, for Federal U.S. federal income tax Tax purposes, the Partnership Company recognizes both “unrecaptured Section 1250 gain” (as defined in Code Section 1(h)) of the Code) and gain treated as ordinary income under Code Section 1250(a) of the Code in respect of such sale, the amount treated as Depreciation Recapture under Section 7.6(a)(ii)(14.7(a)(ii)(A)(I) shall be comprised of a proportionate share of both such types of gain.

Section 704(b) Allocations. (i) Each item of income, gain, loss, loss or deduction or credit for Federal U.S. federal income tax purposes that corresponds to an item of income, gain, loss or expense that is either taken into account in computing Profit Net Income or Net Loss or is specially allocated pursuant to Section 7.3 hereof 7.03 (a “Book Item”) shall be allocated among the Partners Members in the same proportion as the corresponding Book Item is allocated among them pursuant to Section 7.2 7.02 or 7.3 hereof7.03. (ii) (A) If the Partnership Company recognizes Depreciation Recapture (as defined below) in respect of the sale of any Partnership Company asset, (1I) the portion of the gain on such sale which is allocated to a Partner Member pursuant to Section 7.2 7.02 or 7.3 hereof 7.03 shall be treated as consisting of a portion of the PartnershipCompany’s Depreciation Recapture on the sale and a portion of the balance of the PartnershipCompany’s remaining gain on such sale under principles consistent with Regulations Section 1.1245-11 of the Regulations; and (2II) if, for Federal U.S. federal income tax purposes, the Partnership Company recognizes both “unrecaptured Section 1250 gain” (as defined in Code Section 1(h)) of the Code) and gain treated as ordinary income under Code Section 1250(a) of the Code in respect of such sale, the amount treated as Depreciation Recapture under Section 7.6(a)(ii)(17.06(a)(ii)(A)(I) shall be comprised of a proportionate share of both such types of gain.

Section 704(b) Allocations. (i) Each item of income, gain, loss, deduction or credit for Federal income tax purposes that corresponds to an item of income, gain, loss or expense that is either taken into account in computing Profit Net Income or Net Loss or is specially allocated pursuant to Section 7.3 hereof 4.4 (a “Book Item”) shall be allocated among the Partners Members in the same proportion as the corresponding Book Item is allocated among them pursuant to Section 7.2 4.3 or 7.3 hereofSection 4.4. (ii) (A) If the Partnership Company recognizes Depreciation Recapture (as defined below) in respect of the sale of any Partnership Company asset,: (1I) the portion of the gain on such sale which is allocated to a Partner Member pursuant to Section 7.2 4.3 or 7.3 hereof Section 4.4 shall be treated as consisting of a portion of the PartnershipCompany’s Depreciation Recapture on the sale and a portion of the balance of the PartnershipCompany’s remaining gain on such sale under principles consistent with Regulations Section 1.1245-1; and (2II) if, for Federal income tax purposes, the Partnership Company recognizes both “unrecaptured Section 1250 gain” (as defined in Code Section 1(h)) of the Code) and gain treated as ordinary income under Code Section 1250(a) of the Code in respect of such sale, the amount treated as Depreciation Recapture under Section 7.6(a)(ii)(14.7(a)(ii)(A)(I) shall be comprised of a proportionate share of both such types of gain.