Common use of Section 704(c) Allocation Clause in Contracts

Section 704(c) Allocation. If a Partner contributes property to the Partnership that has an adjusted tax basis different from its fair market value at the time of contribution, then for federal income tax purposes only, income, gain, loss and deduction with respect to such property shall be allocated among the Partners as required by Section 704(c) of the Code (using the traditional method of Regulation § 1.704-3(b)), so as to take account of such difference.

Section 704(c) Allocation. If a Partner contributes property to the ------------------------- Partnership that has an adjusted tax basis different from its fair market value at the time of contribution, then for federal income tax purposes only, income, gain, loss and deduction with respect to such property shall be allocated among the Partners as required by Section 704(c) of the Code (using the traditional method of Regulation § (S) 1.704-3(b)), so as to take account of such difference.