Tax Allocations Contributed Property. With respect to any asset contributed by a Member to the Company (“Contributed Asset”) that has a tax basis different from its agreed upon fair market value on the date of the contribution, the Company shall make the special allocations required by Section 704(c) of the Code, These special allocations apply solely for Federal, state, and local income tax purposes. They shall not affect or be taken into account in computing a Member’s capital account, or share of profits, losses, or distributions pursuant to any provision of this Agreement. In making these special allocations, the Company shall use the traditional method with curative allocations described in treasury regulation § 1.704-3(c) for any Contributed Asset.
Appears in 9 contracts
Samples: Formation and Transfer Agreement (Armstrong Coal Company, Inc.), Asset Purchase Agreement (Armstrong Coal Company, Inc.), Formation and Transfer Agreement (Armstrong Energy, Inc.)
