Allocation rule Clause Samples
An allocation rule clause defines how certain rights, responsibilities, or resources are distributed among the parties involved in an agreement. In practice, this clause may specify which party is responsible for costs, how profits or losses are shared, or how assets are divided in various scenarios. By clearly outlining these allocations, the clause helps prevent disputes and ensures that each party understands their obligations and entitlements under the contract.
Allocation rule. If an S corpora- tion’s pre-limitation amount for any taxable year exceeds its net recognized built-in gain for that year, the S cor- poration’s net recognized built-in gain consists of a ratable portion of each item of income, gain, loss, and deduc- tion included in the pre-limitation amount.
Allocation rule. Except as otherwise set forth in this Agreement, each item of Partnership income, gain, loss, deduction or credit (including depreciation) earned, realized or available by or to the Partnership shall be allocated to the Partners in proportion to the total amount of Partnership Profits or Losses allocated to each Partner.
Allocation rule. Common direct ▇▇▇▇▇ Unit operating expenses incurred dur- ing a year for the benefit of the Oil Unit and the Gas Unit will be allocated to the Oil Joint Account and the Gas Joint Account, respectively, in the ratio of direct expenditures for the Oil Unit and the Gas Unit during such year.