Common use of INCOME CHARACTERIZATION Clause in Contracts

INCOME CHARACTERIZATION. For purposes of determining the character (as ordinary income or capital gain) of any profit allocated to the Members pursuant to Section 3(c), such portion of the taxable income of the Company allocated pursuant to Section 3(c) which is treated as ordinary income attributable to the recapture of depreciation shall, to the extent possible, be allocated among the Members in the proportion which (i) the amount of depreciation previously allocated to each Member bears to (ii) the total of such depreciation allocated to all Members. This Section 3(c)(iv)(A) shall not alter the amount of allocations among the Members pursuant to Section 3(c) but merely the character of income so allocated.

INCOME CHARACTERIZATION. For purposes of determining the character (as ordinary income or capital gain) of any profit Gain on Disposition allocated to the Members pursuant to Section 3(c)3.2, 3.3 or 3.4. such portion of the taxable income of the Company allocated pursuant to any such Section 3(c) which is treated as ordinary income attributable to the recapture of depreciation shall, to the extent possible, be allocated among the Members in the proportion which (i) the amount of depreciation previously allocated to each Member bears to (ii) the total of such depreciation allocated to all Members. This Section 3(c)(iv)(A) 3.5.1 shall not alter the amount of allocations among the Members pursuant to Section 3(c) Sections 3.2, 3.3 and 3.4, but merely the character of income so allocated.

INCOME CHARACTERIZATION. For purposes of determining the character (as ordinary income or capital gain) of any profit Gain on Disposition allocated to the Members pursuant to Section 3(c)3.2, 3.3 or 3.4, such portion of the taxable income of the Company allocated pursuant to any such Section 3(c) which is treated as ordinary income attributable to the recapture of depreciation shall, to the extent possible, be allocated among the Members in the proportion which (i) the amount of depreciation previously allocated to each Member bears to (ii) the total of such depreciation allocated to all Members. This Section 3(c)(iv)(A) 3.5.1 shall not alter the amount of allocations among the Members pursuant to Section 3(c) Sections 3.2, 3.3 and 3.4, but merely the character of income so allocated.

INCOME CHARACTERIZATION. For purposes of determining the character (as ordinary income or capital gain) of any profit Gain on Disposition allocated to the Members pursuant to Section 3(c)3.2, 3.3 or 3.4, such portion of the taxable income of the Company allocated pursuant to any such Section 3(c) which is treated as ordinary income attributable to the recapture of depreciation shall, to the extent possible, be allocated among the Members in the proportion which (i) the amount of depreciation previously allocated to each Member bears to (ii) the total of such depreciation allocated to all Members. This Section 3(c)(iv)(A) 3.5.1 shall not alter the amount of allocations among the Members pursuant to Section 3(c) Sections 3.2, 3.3 and 3 4, but merely the character of income so allocated.