TAX ASSUMPTIONS. In entering into this Agreement and related documents, the Sprint Group has made the following assumptions regarding the characterization of the transactions contemplated under this Agreement for federal income tax purposes (the "TAX ASSUMPTIONS"):
(i) for federal income tax purposes, this Agreement will be treated as a "true lease" with respect to all of the Leased Property, the members of the Sprint Group will be treated, directly or indirectly through one or more entities that are classified as partnerships or disregarded entities for federal income tax purposes, as the owners and sublessors of the Leased Property, and Lessee will be treated (or, if Lessee is a disregarded entity for federal income tax purposes, the entity treated as the owner of Lessee for federal income tax purposes) as the lessee of the Leased Property;
(ii) following the execution of this Agreement, the Sprint Group will be entitled to deduct, pursuant to Section 168(b) of the Code, depreciation deductions with respect to the Sprint Group's adjusted tax basis in the Leased Property using the same depreciation method(s) as in effect immediately before the execution of this Agreement ("FEDERAL DEPRECIATION DEDUCTIONS");
(iii) prepaid Rent and Pre-Lease Rent with respect to each Site will be paid under a single lease subject to Section 467 of the Code and will be characterized in part as a loan under section 467 of the Code and Treasury Regulations issued under such section and the Sprint Group will be entitled to deduct interest attributable thereto with respect to each Site as set forth in Exhibit H;
(iv) the only amounts that any Sprint Group Member will be required to include in gross income with respect to the transactions contemplated by this Agreement and related documents will be (A) Rent and Pre-Lease Rent as it accrues as rent in accordance with the terms of this Agreement and the application of Section 467 of the Code and Treasury Regulations issued under such section and as set forth in Exhibit H with respect to each Site; (B) any indemnity (including any gross up) pursuant to this Agreement; (C) any amounts paid or otherwise recognized pursuant to a voluntary sale or other disposition by any Sprint Group Member (other than a sale or disposition attributable to a default by Lessee and/or the exercise of remedies by Lessor or Sprint or its Affiliates under this Agreement) of any Leased Property, it being understood for these purposes that a sale or disposition that may be de...
TAX ASSUMPTIONS. This Lease has been entered into on the basis that Lessor is entitled to such federal, state and local income tax deductions, credits and other benefits (the "Tax Benefits") as are provided to an owner of property including, without limitation: (A) the Recovery Deductions (as defined herein); and (B) the interest deduction under the Internal Revenue Code of 1986, as amended (the "Code") in the full amount of any interest paid or accrued by Lessor, using Lessor's method of tax accounting, for any indebtedness incurred by Lessor in financing its purchase of the Equipment (the "Interest Deductions").
TAX ASSUMPTIONS. The transactions contemplated by the Lease Documents have been entered into on the basis of the following tax assumptions (the "Tax Assumptions"):
TAX ASSUMPTIONS. The Basic Rent payable by Lessee and Net Economic Return have been computed on the basis of the following tax assumptions:
(a) for Federal income tax purposes the Trust Estate will be treated as a trust subject to the provisions of Section 671 through 679 of the Code, and Owner Participant will, as the owner of the entire interest in the Trust Estate, take into account in computing its Federal income tax liability all items of income, loss, gain, deduction and credit (including the MACRS Deductions (as hereinafter defined)) of the Trust Estate;
(b) the Lease will be treated as a true lease under which Owner Participant will be treated as owner and lessor and Lessee will be treated as lessee;
(c) for Federal income tax purposes, including for purposes of Section 861 of the Code, all amounts includible in the gross income of Owner Participant, Lessor or the Trust Estate with respect to the transactions contemplated by the Operative Documents and all deductions and credits allowable to Owner Participant, Lessor or the Trust Estate with respect to the transactions contemplated by the Operative Documents will be treated as derived from, or allocable to, sources within the United States;
(d) the Federal rate of tax on the taxable income of Lessor will be 34%;
(e) Owner Participant, as the owner of the Facility Assets as of the Closing Date, will be entitled to such deductions, credits and other benefits as are provided by the Code to an owner of property, including (A) as to an amount (the "Seven-year Amount") equal to 97.800% of Lessor's Cost, deductions for cost recovery with respect to the Facility Assets under Section 168(b)(1) of the Code computed using a seven-year recovery period, the 200% declining-balance method (switching to straight-line) and the half-year convention, resulting in deductions in an amount equal to 14.29% of the Seven-year Amount in the taxable year of Lessor that includes the Closing Date and 24.49%, l7.49%, 12.49%, 8.93%, 8.92%, 8.93% and 4.46% of the Seven-year Amount (such percentages to be calculated to more than two decimal places for purposes of determining the actual deductions) in its succeeding seven taxable years, respectively, (B) an to an amount (the "Nonresidential Real Property Amount") equal to 7.012% of Lessor's Cost, deductions for cost recovery with respect to the Facility under Section 168(b) of the Code computed using a 31.5-year recovery period, the straight-line method and the mid-month convention, resulting in de...
TAX ASSUMPTIONS. In entering into the Lease and the transactions contemplated hereby, LESSOR has made the following tax assumptions for the Aircraft (the "Tax Assumptions"):
(1) LESSOR is entitled to the benefit of depreciation for Federal income tax purposes under the Accelerated Cost Recovery System provided for in Section 168 of the Code and depreciation deductions for Hawaii state income tax purposes based upon one hundred percent (100%) of the Acquisition Cost of the Aircraft, and on the basis that the Aircraft shall have seven year recovery period and property classification, and that LESSOR shall be entitled to use the method of depreciation and depreciation convention equal to 200% declining balance method of depreciation, switching to the straight line method at the point in time that maximizes the depreciation allowance for LESSOR (the "Recovery Deduction");
(2) with respect to the Aircraft, Lessor will be entitled to the benefit of deductions for Federal and State Of Hawaii income tax purposes for interest payable with respect to any indebtedness incurred by LESSOR in connection with any financing by LESSOR of any portion of the Acquisition Cost of the Aircraft (the "Interest Deduction"); and
(3) for each year of the Base Term of the Lease, including any year in which a Tax Loss (hereinafter defined) occurs, LESSOR will be subject to tax as follows:
TAX ASSUMPTIONS. 2 SECTION 3. TAX REPRESENTATIONS, WARRANTIES AND COVENANTS.................. 3 SECTION 4. INDEMNITY...................................................... 5
TAX ASSUMPTIONS. In entering into the Lease and the transactions contemplated hereby, LESSOR has made the following tax assumptions for the Aircraft (the "Tax Assumptions"):
(1) LESSOR or Beneficiary is entitled to the benefit of depreciation for Federal income tax purposes under the Accelerated Cost Recovery System provided for in Section 168 of the Code and depreciation deductions for state income tax purposes for the state where LESSOR's or Beneficiary's principal place of business is located ("LESSOR's Home State") based upon one hundred percent (100%)of the Acquisition Cost of the Aircraft, and on the basis that the Aircraft shall have seven year recovery period and property classification, and that LESSOR or Beneficiary shall be entitled to use the method of depreciation and depreciation convention equal to 200% declining balance method of depreciation, switching to the straight line method at the point in time that maximizes the depreciation allowance for LESSOR or Beneficiary (the "Recovery Deduction");
(2) with respect to the Aircraft, Lessor or Beneficiary will be entitled to the benefit of deductions for Federal and LESSOR's Home State income tax purposes for interest payable with respect to any indebtedness incurred by LESSOR or Beneficiary in connection with any financing by LESSOR or Beneficiary of any portion of the Acquisition Cost of the Aircraft (the "Interest Deduction"); and
(3) for each year of the Base Term of the Lease, including any year in which a Tax Loss (hereinafter defined) occurs, LESSOR or Beneficiary will be subject to tax as follows:
TAX ASSUMPTIONS. National City has made certain tax assumptions pursuant to Section 12 of the Agreement, these assumptions are as follows: The Modified Accelerated Cost Recovery System (MACRS) property class for the Equipment is seven (7) years.
TAX ASSUMPTIONS. Indemnitors acknowledge that, by virtue of the equity investment made by the Fund in the CDE that is intended to constitute a QEI, and assuming no recapture or disallowance of the Tax Credits occurs, JPMC (through its ownership of CCE) expects to claim or be entitled to claim Tax Credits in an amount equal to (i) 5% of the QEI on the Credit Allowance Date and on each of the next two anniversary dates of the Credit Allowance Date, and (ii) 6% of the QEI on each of the next four anniversary dates of the Credit Allowance Date (the “NMTC Assumption”), in an aggregate amount over such period of $3,900,000.
TAX ASSUMPTIONS. Unless there is a Determination (as defined below) regardless of any position taken by the Ahmanson Group on any tax return or in any claim for refund with respect to the receipt of the Case Proceeds or payments on the Commitment (or of the actual payment or actual receipt of any taxes with respect thereto), the Assumed Tax Liability shall mean an amount equal to the income (including franchise) tax liability of the Ahmanson Group attributable to the receipt of the Case Proceeds computed on the following assumptions ("Tax Assumptions") :
