Excess Deficit Balance definition

Excess Deficit Balance means the amount, if any, by which the balance in a Member’s Capital Account as of the end of the relevant taxable year is more negative than the amount, if any, of such negative balance that such Member is treated as obligated to restore to the Company pursuant to Treas. Reg. §1.704-1(b)(2)(ii)(c), Treas. Reg. §1.704-1(b)(2)(ii)(h), Treas. Reg. §1.704-2(g)(1), or Treas. Reg. §1.704-2(i)(5). Solely for purposes of computing a Member’s Excess Deficit Balance, such Member’s Capital Account shall be reduced by the amount of any Account Reduction Items that are reasonably expected as of the end of such taxable year.
Excess Deficit Balance means the amount, if any, by which the balance in a Member’s Capital Account as of the end of the relevant taxable year is more negative than the amount, if any, of such negative balance that such Member is treated as obligated to restore to the Joint Venture Company pursuant to Treas. Reg. § 1.704-1(b)(2)(ii)(c), Treas. Reg. § 1.704-1(b)(2)(ii)(h), Treas. Reg. § 1.704-2(g)(1), and Treas. Reg. § 1.704-2(i)(5). Solely for purposes of computing a Member’s Excess Deficit Balance, such Member’s Capital Account shall be reduced by the amount of any Account Reduction Items that are reasonably expected as of the end of such taxable year.
Excess Deficit Balance means, with respect to any Member, the deficit balance, if any, in such Member’s Capital Account as of the end of the relevant fiscal year or other period, after giving effect to the following adjustments:

Examples of Excess Deficit Balance in a sentence

  • While the Company plans to continue to monitor closely its spending, conditions in the capital markets continue to make it difficult for early-stage companies to raise additional capital.

  • No Net Loss or Company deductions for any Fiscal Year shall be allocated to any Member to the extent such allocation would cause or increase an Excess Deficit Balance in such Member's Capital Account.


More Definitions of Excess Deficit Balance

Excess Deficit Balance means the amount, if any, by which the balance in a Member's Capital Account as of the end of the relevant taxable year is more negative than the amount, if any, of such negative balance that such Member is treated as obligated to restore to the Company pursuant to Treas. Reg. Section 1.704-1(b)(2)(ii)(c)
Excess Deficit Balance. The deficit balance, if any, in a Member’s Capital Account as of the end of a Fiscal Year determined, solely for purposes of this definition of “Excess Deficit Balance”, by crediting the Member’s Capital Account with the amount of any deficit balance in such Capital Account that the Member is obligated to restore or is treated as obligated to restore pursuant to Regulations sections 1.704 -1(b)(2)(ii)(b)(3) and 1.704 -1(b)(2)(ii)(c) or is deemed to be obligated to restore pursuant to the penultimate sentences of Regulations sections 1.704 -2(g)(1) and 1.704 -2(i)(5) (determined after taking into account any Nonrecourse Deductions or recapture of Nonrecourse Deductions, as provided in section 4.3(a) of this Addendum, for such year), and by debiting the Member’s Capital Account with any adjustment, allocation, or distribution described in paragraph (4), (5), or (6) of Regulations section 1.704 -1(b)(2)(ii)(d). This definition of “Excess Deficit Balance” and the provisions in section 4 of this Addendum that contain the term “Excess Deficit Balance” are intended to deal with the theoretical but unlikely circumstances in which Capital Accounts could, but for the inclusion of such provisions in this Addendum, be driven negative without economic significance.
Excess Deficit Balance means the amount, if any, by which the balance in a Member's Capital Account as of the end of the relevant taxable year is more negative than the amount, if any, of such negative balance that such Member is obligated to restore to the Company or is treated as obligated to restore to the Company pursuant to Treas. Reg. 1.704-1(b)(2)(ii)(c) , Treas. Reg. 1.704-1(b)(2)(ii)(h), Treas. Reg. 1.704-2(g)(1), or Treas. Reg. 1.704-2(i)(5). Solely for purposes of computing a Member's Excess Deficit Balance, such Member's Capital Account shall be reduced by the amount of any Account Reduction Items that are reasonably expected as of the end of such taxable year.
Excess Deficit Balance and the provisions in section 4 of this Addendum that contain the term “Excess Deficit Balance” are intended to deal with the theoretical but unlikely circumstances in which Capital Accounts could, but for the inclusion of such provisions in this Addendum, be driven negative without economic significance.
Excess Deficit Balance. The deficit balance, if any, in a Member's Capital Account as of the end of a Fiscal Year determined, solely for purposes of this definition of "Excess Deficit Balance", by crediting the Member's Capital Account with the amount of any deficit balance in such Capital Account that the Member is obligated to restore or is treated as obligated to restore pursuant to Regulations sections 1.704-1(b)(2)(ii)(b)(3) and 1.704-1(b)(2)(ii)(c) or is deemed to be obligated to restore pursuant to the penultimate sentences of Regulations sections 1.7 04-2(g)(1) and 1.704-2(i)(5) (determined after taking into account any Nonrecourse Deductions or recapture of Nonrecourse Deductions, as provided in section 4.3(a) of this Addendum, for such year), and by debiting the Member's Capital Account with any adjustment, allocation, or distribution described in paragraph (4), (a), or (6) of Regulations section 1.704-1(b)(2)(ii)(d). This definition of "Excess Deficit Balance" and the provisions in section 4 of this Addendum that contain the term "Excess Deficit Balance" are intended to deal with the theoretical but unlikely circumstances in which Capital Accounts could, but for the inclusion of such provisions in this Addendum, become negative without economic significance. Fiscal Year: The fiscal year of the LLC under the Agreement. Net Income and Net Loss: For a period as determined for federal income tax purposes, the taxable income or loss, respectively, computed with the following adjustments: o-io \\DC - 64964/1 - 0871803.01
Excess Deficit Balance means a Deficit Balance in a Member’s Capital Account in excess of (i) any Restoration Obligation of such Member, (ii) the Member’s Share of Company Minimum Gain and (iii) the Member’s share of Member Non-Recourse Debt Minimum Gain, after taking into account any reductions required by Treasury Regulations 1.704-1(b)(2)(ii)(d)4-6 for adjustments, allocations and distributions reasonably expected to be made (as of the close of the taxable year in question).
Excess Deficit Balance has the meaning set forth in Appendix A, attached hereto.