Short Period Election Clause Samples
A Short Period Election clause allows parties to elect to treat a tax year as ending on a date earlier than the standard year-end, typically due to significant events such as a change in ownership, merger, or liquidation. In practice, this clause enables the filing of a tax return for a partial year, which may be necessary to properly allocate income, deductions, and tax liabilities among different periods or owners. Its core function is to provide flexibility in tax reporting and compliance, ensuring that tax obligations are accurately matched to the relevant period and parties involved.
Short Period Election. TWX and AOL shall jointly make a timely election under Section 1.1502-76(b)(2)(ii)(D) of the Regulations or any comparable provision or state or local law to allocate items ratably between the final Pre-Distribution Tax Period (TWX Consolidated Return) and the AOL short taxable period beginning after the Distribution Date (AOL separate tax return).
Short Period Election. At the direction of Cable, TWX shall join with Cable in making an election under Section 1.1502-76(b)(2)(ii)(D) of the Treasury Regulations to allocate items ratably between the final Agreement Year (TWX Consolidated Return) and the Cable short period beginning after the date of the Distribution (Cable separate return).
Short Period Election. For purposes of this Agreement, if, for any federal, state or local income tax purpose, a taxable period of the Company does not terminate on the Closing Date, the Company shall, to the extent permitted by applicable law, elect with the relevant taxing authority to treat such taxable period for all purposes as a short taxable period ending as of 12.01 a.m.on the Closing Date, and such short taxable period shall be treated as a Pre-Closing Period for purposes of this Agreement. In any case where applicable law does not permit such election to be made, then, for purposes of this Agreement, the taxable income of the Company for the entire taxable period shall be allocated as agreed by Buyer and Sellers between the Pre-Closing Period and the remainder of the taxable period using an interim-closing-of-the-books method. In no event shall taxable income arising from events following the Closing Date be allocated to a Pre-Closing Period.
Short Period Election. For purposes of this Agreement, if, for any federal, state or local income tax purpose, a taxable period of the Company does not terminate on the Closing Date, the Company shall, to the extent permitted by applicable law, elect with the relevant taxing authority to treat such taxable period for all purposes as a short taxable period ending as of 12.01 a.m. on the Closing Date, and such short taxable period shall be treated as a Pre-Closing Period for purposes of this Agreement.
Short Period Election. MJN shall join with BMS in making an election under Section 1.1502-76(b)(2)(ii)(D) of the Treasury Regulations to allocate items ratably between the portion of the taxable year in which the MJN Consolidated Group is included in the BMS Consolidated Group and the MJN short period beginning after the date of the External Split-off.