Common use of Allocation of Federal Income Tax Items Under Code Section 704(c) Clause in Contracts

Allocation of Federal Income Tax Items Under Code Section 704(c). In accordance with Code Section 704(c) and the Treasury Regulations thereunder, depreciation, amortization, income, gain and loss, as determined for tax purposes, with respect to any Partnership Property whose fair market value differs from its adjusted basis for federal income tax purposes at the time of contribution to the Partnership shall, for tax purposes, be allocated among the Partners so as to take account of any variation between the adjusted basis of such property to the Partnership for federal income tax purposes and its fair market value. Any elections or other decisions relating to such allocations shall be made for the Partnership by the General Partner in any manner that reasonably reflects the purpose and intention of this Agreement. Allocations pursuant to this Article 9.2 shall not affect, or in any way be taken in to account in computing, any Partner’s Capital Account balance, allowable share of income, gain, loss, deduction, or credit pursuant to Article 9.1, or distributions pursuant to any provision of this Agreement.