Common use of Taxable Gain on Exchange Clause in Contracts

Taxable Gain on Exchange. Any taxable gain incurred by the Partnership as a result of receiving taxable “boot” in an otherwise tax-deferred exchange of a Partnership property shall be allocated to the Partners receiving said funds and other consideration as said allocation is provided in Code Section 704(a) and 704(b), but only to the extent that the total gain so allocated does not exceed the amount of gain that would be allocated to the Partner had the property been sold outright for all cash by the Partnership for the net amount credited to the Partnership in the exchange. Any such excess shall be allocated to the remaining Partners in the same ratio that total gain would have been allocated had the property been sold outright for all cash by the Partnership for the net amount credited to the Partnership in the exchange.

Taxable Gain on Exchange. Any taxable gain incurred by the Partnership as a result of receiving taxable “"boot” " in an otherwise tax-deferred exchange of a Partnership property Property shall be allocated to the Partners receiving said funds and other consideration as said allocation is provided in Code Section 704(a) and 704(b), but only to the extent that the total gain Gain so allocated does not exceed the amount of gain that would be allocated to the Partner had the property Property been sold outright for all cash by the Partnership for the net amount credited to the Partnership in the exchange. Any such excess shall be he allocated to the remaining Partners in the same ratio that total gain Gain would have been allocated had the property Property been sold outright for all cash by the Partnership for the net amount credited to the Partnership in the exchange.