Common use of Tax Allocations; Code Section 704(c) Clause in Contracts

Tax Allocations; Code Section 704(c). In accordance with Code Section 704(c) and the Regulations thereunder, income, gain, loss, and deduction with respect to any Property contributed to the capital of the Company shall, solely for tax purposes, be allocated among the Members so as to take account of any variation between the adjusted basis of such Property to the Company for federal income tax purposes and its initial Gross Asset Value (computed in accordance with the definition of Gross Asset Value). Such allocation shall be made in accordance with the remedial allocation method described by Regulations Section 1.704-3(d). Notwithstanding any provision in this Agreement to the contrary, in the event that any such Property is subject to the “anti-churning” rules of Code Section 197(f)(9), no remedial allocations of income or deduction shall be made to any Member with respect to such Property until such time at which such asset is sold by the Company. In the event the Gross Asset Value of any Property is adjusted pursuant to subparagraph (ii) of the definition of Gross Asset Value, subsequent allocations of income, gain, loss, and deduction with respect to such Property shall take account of any variation between the adjusted basis of such Property for federal income tax purposes and its Gross Asset Value in the same manner as under Code Section 704(c) and the Regulations thereunder. Such allocation shall be made in accordance with the remedial allocation method described by Regulations Section 1.704-3(d). Any elections or other decisions relating to such allocations shall be made by the Managing Member in any manner that reasonably reflects the purpose and intention of this Agreement. Allocations pursuant to this Section 3.6 are solely for purposes of federal, state, and local Taxes and shall not affect, or in any way be taken into account in computing, any Member’s Capital Account or share of Profits, Losses, other items, or distributions pursuant to any provision of this Agreement.

Tax Allocations; Code Section 704(c). (a) Except as otherwise provided in this Section 5.7, each item of income, gain, loss and deduction of the Company for federal income tax purposes shall be allocated among the Members in the same manner as such items are allocated for book purposes under this Article V. (b) In accordance with Code Section 704(c) and the Treasury Regulations thereunder, income, gain, loss, and deduction with respect to any Property contributed to the capital of the Company shall, solely for tax purposes, be allocated among the Members so as to take account of any variation between the adjusted basis of such Property to the Company for federal income tax purposes and its initial Gross Asset Value (computed in accordance with the definition of “Gross Asset Value). Such allocation shall be made in accordance with ”) using the “remedial allocation method method” described by in Treasury Regulations Section 1.704-3(d). Notwithstanding any provision in this Agreement to the contrary, in the event that any such Property is subject to the “anti-churning” rules of Code Section 197(f)(9), no remedial allocations of income or deduction shall be made to any Member with respect to such Property until such time at which such asset is sold by the Company. . (c) In the event the Gross Asset Value of any Property Company asset is adjusted pursuant to subparagraph (iib) of the definition of “Gross Asset Value, ,” subsequent allocations of income, gain, loss, and deduction with respect to such Property asset shall take account of any variation between the adjusted basis of such Property asset for federal income tax purposes and its Gross Asset Value in the same manner as under Code Section 704(c) and the Treasury Regulations thereunder. Such allocation shall be made in accordance with thereunder applying the “remedial allocation method method” described by in Treasury Regulations Section 1.704-3(d). . (d) Any elections or other decisions relating to such allocations shall be made by the Managing Member Board in any manner that reasonably reflects the purpose and intention of this Agreement. Allocations pursuant to this Section 3.6 5.7 are solely for purposes of federal, state, and local Taxes taxes and shall not affect, or in any way be taken into account in computing, any Member’s Capital Account or share of Profits, Losses, other items, or distributions pursuant to any provision of this Agreement.