Common use of Allocation of Loss Clause in Contracts

Allocation of Loss. Loss (as defined in Section 6.5, below) for each taxable year shall be allocated as follows: (a) First, in the event that Profit has been previously allocated to the Members pursuant to Section 6.1(b) for any prior period, then Loss shall be allocated to the Members to offset such Profit; and (b) Second, the balance of any Loss then remaining shall be allocated to the Members in proportion to their respective Percentage Interests.

Appears in 3 contracts

Sources: Operating Agreement, Operating Agreement (KW Victory Land Loan, LLC), Operating Agreement (Kennedy-Wilson Properties (IL))