Adjusted Deficit Capital Account definition

Adjusted Deficit Capital Account means with respect to each Member, the deficit balance, if any, in that Member’s Capital Account as of the end of the Company’s Fiscal Year, after giving effect to the following adjustments:

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Adjusted Deficit Capital Account means, with respect to any Member, any deficit balance in such Member's Capital Account as of the end of the relevant fiscal Year, after giving effect to the following adjustments: (i) credit to such Capital Account any amounts which such Member is obligated to restore pursuant to this LLC Agreement or under Section 1.704-1(b)(2)(ii)(c) of the Treasury Regulations, as well as any addition thereto pursuant to the next to last sentence of Sections 7.704-2(g)(1) and (i)(5) of the Treasury Regulations, after taking into account thereunder any changes during such year in Company minimum gain (as determined in accordance with Section 1.704-2(d) of the Treasury Regulations) and in the minimum gain attributable to any Member nonrecourse debt (as determined under Section 1.704-2(i)(3) of the Treasury Regulations); and (ii) debit to such Capital Account the items described in Sections 1.704-1(b)(2)(ii)(d)(4), (5) and (6) of the Treasury Regulations. This definition of Adjusted Deficit Capital Account is intended to comply with the provision of Treasury Regulations Section 1.704-1(b)(2)(ii)(d) and 1.704-2, and shall be interpreted consistently with those provisions.

Adjusted Deficit Capital Account means, in respect of any Member, the deficit balance in such Member's Capital Account as reduced for items described in Treasury Regulations ss. 1.704-1(b)(2)(ii)(d)(4), (5) and (6) and increased by (i) such Member's share of Company Minimum Gain and Member Nonrecourse Debt Minimum Gain (if any), and (ii) amounts a Member is obligated to restore or contribute to the Company as set forth in Treasury Regulation ss. 1.704-1(b)(2)(ii)(c).

Examples of Adjusted Deficit Capital Account in a sentence

If a Member has an Adjusted Deficit Capital Account Balance at the end of a Company taxable year, such Member shall be allocated items of income and gain in the amount of such Adjusted Deficit Capital Account Balance as quickly as possible in order to eliminate it.
Except as otherwise required by the last sentence of this Section 10.1(b), no allocations of loss, deduction, and/or expenditures described in Code §705(a)(2)(B) will be charged to the Capital Accounts of any Member if such allocation would cause such Member to have an Adjusted Deficit Capital Account.
If a Member unexpectedly receives an adjustment, allocation, or distribution described in Treasury Regulation Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6), any of which causes or increases an Adjusted Deficit Capital Account Balance in such Member's capital account, then he will be specially allocated items of income and gain in an amount and manner sufficient to eliminate such deficit balance created or increased by such adjustment, allocation, or distribution as quickly as possible.
The amount of the loss, deduction and/or Code section 705(a)(2)(B) expenditure which would have caused a Member to have an Adjusted Deficit Capital Account shall instead be charged to the Capital Account of any Member which would not have an Adjusted Deficit Capital Account as a result of the allocation, in proportion to their respective Capital Contributions, or, if no such Member exists, then to the Members in accordance with their interests in Company profits pursuant to section 9.1.
Sections 1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(d)(5)and 1.704-1(b)(2)(d)(6), as it may be amended or supplemented from time to time (an "Adjusted Deficit Capital Account").
If all Members have Adjusted Deficit Capital Account Balances, Losses shall be allocated in accordance with Sections 5.2(a)(2) or 5.2(b)(2).
Sections 1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(d)(5) and 1.704-l(b)(2)(d)(6), as it may be amended or supplemented from time to time (an "Adjusted Deficit Capital Account").
The losses allocated to any Member pursuant to section 9.1(a) shall not exceed the maximum amount of losses that can be so allocated without causing any Member to have an Adjusted Deficit Capital Account at the end of any Fiscal Year.
No allocations of loss, deduction and/or expenditures described in section 705(a)(2)(B) of the Code shall be charged to the Capital Account of any Member if such allocation would cause such Member to have an Adjusted Deficit Capital Account.
Sections 1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(d)(5) and 1.704-1(b)(2)(d)(6), as it may be amended or supplemented from time to time (an "Adjusted Deficit Capital Account").

More Definitions of Adjusted Deficit Capital Account

Adjusted Deficit Capital Account means, with respect to any Member, the deficit balance, if any, in such Member’s Capital Account as of the end of the taxable year, after giving effect to the following adjustments: 1.2.1. credit to such Capital Account any amount that such Member is obligated to restore under Treasury Regulation § 1.704-1(b)(2)(ii)(c), as well as any addition thereto pursuant to the next to last sentence of Treasury Regulation §§ 1.704-2(g)(1) and 1.704-2(i)(5), after taking into account thereunder any changes during such year in partnership minimum gain (as determined in accordance with Treasury Regulation § 1.704-2(d)) and in the minimum gain attributable to any partner nonrecourse debt (as determined under Treasury Regulation § 1.704-2(i)(3)); and 1.2.2. debit to such Capital Account the items described in Treasury Regulation §§ 1.704-1(b)(2)(ii)(d)(4), (5) and (6). This definition of Adjusted Deficit Capital Account is intended to comply with the provisions of Treasury Regulation §§ 1.704-1(b)(2)(ii)(d) and 1.704-2, and shall be interpreted consistently with those provisions.