{"component": "clause", "props": {"groups": [{"size": 15, "samples": [{"hash": "kqMzBXS3g1p", "uri": "/contracts/kqMzBXS3g1p#section-754", "label": "Purchase and Sale Agreement (Williams Partners L.P.)", "score": 21.0, "published": true}, {"hash": "jDMIRUT7dWP", "uri": "/contracts/jDMIRUT7dWP#section-754", "label": "Limited Liability Company Agreement (Williams Partners L.P.)", "score": 21.0, "published": true}, {"hash": "eeddGXpcwLo", "uri": "/contracts/eeddGXpcwLo#section-754", "label": "Limited Liability Company Agreement (Williams Partners L.P.)", "score": 21.0, "published": true}], "snippet": "All items of income, gain, loss, deduction and credit recognized by the Company for federal income tax purposes and allocated to the Members in accordance with the provisions hereof shall be determined without regard to any election under section 754 of the Code which may be made by the Company; provided, however, that such allocations, once made, shall be adjusted as necessary or appropriate to take into account those adjustments permitted or required by sections 734 and 743 of the Code.", "snippet_links": [{"key": "all-items", "type": "definition", "offset": [0, 9]}, {"key": "by-the-company-for", "type": "clause", "offset": [65, 83]}, {"key": "federal-income-tax-purposes", "type": "clause", "offset": [84, 111]}, {"key": "to-the-members", "type": "clause", "offset": [126, 140]}, {"key": "in-accordance-with", "type": "clause", "offset": [141, 159]}, {"key": "the-provisions", "type": "clause", "offset": [160, 174]}, {"key": "election-under", "type": "clause", "offset": [224, 238]}, {"key": "the-code", "type": "clause", "offset": [254, 262]}, {"key": "take-into-account", "type": "definition", "offset": [399, 416]}, {"key": "required-by", "type": "definition", "offset": [448, 459]}], "hash": "8847722d964f37b2e917a93415d4e220", "id": 1}, {"size": 7, "samples": [{"hash": "iNamXmH8fVb", "uri": "/contracts/iNamXmH8fVb#section-754", "label": "Member Control Agreement (South 8 Energy, LLC)", "score": 33.3319625854, "published": true}, {"hash": "hs5KqAefxJO", "uri": "/contracts/hs5KqAefxJO#section-754", "label": "Member Control Agreement", "score": 21.7194347382, "published": true}, {"hash": "6wBbZTkgqaL", "uri": "/contracts/6wBbZTkgqaL#section-754", "label": "Member Control Agreement", "score": 21.0, "published": true}], "snippet": "Any election by the Company under Section 754 of the Code to adjust the basis of the Company assets pursuant to Section 734 of the Code or Section 743 of the Code shall be made in the sole discretion of the Board. If such an election is made, allocations of Company items of income, gain, receipt, loss, deduction, and credit shall be made in a manner consistent with such allocation of items in accordance with Section 734 and/or Section 743 of the Code, as the case may be.", "snippet_links": [{"key": "election-by-the-company", "type": "clause", "offset": [4, 27]}, {"key": "the-code", "type": "clause", "offset": [49, 57]}, {"key": "company-assets", "type": "definition", "offset": [85, 99]}, {"key": "pursuant-to-section", "type": "definition", "offset": [100, 119]}, {"key": "discretion-of-the-board", "type": "clause", "offset": [189, 212]}, {"key": "an-election", "type": "clause", "offset": [222, 233]}, {"key": "company-items", "type": "definition", "offset": [258, 271]}, {"key": "consistent-with", "type": "definition", "offset": [352, 367]}, {"key": "allocation-of-items", "type": "clause", "offset": [373, 392]}, {"key": "in-accordance-with", "type": "clause", "offset": [393, 411]}, {"key": "the-case", "type": "definition", "offset": [459, 467]}], "hash": "df7cc1dfe33d6ded15fbb49ded9ecb52", "id": 2}, {"size": 4, "samples": [{"hash": "bJgHtz0uHcm", "uri": "/contracts/bJgHtz0uHcm#section-754", "label": "Limited Liability Company Agreement (Lendway, Inc.)", "score": 35.1519508362, "published": true}, {"hash": "3WA73qczvAa", "uri": "/contracts/3WA73qczvAa#section-754", "label": "Limited Liability Company Agreement (CurrencyWorks Inc.)", "score": 32.5126609802, "published": true}, {"hash": "EPmnjBpESk", "uri": "/contracts/EPmnjBpESk#section-754", "label": "LLC Operating Agreement", "score": 27.238193512, "published": true}], "snippet": "The Tax Matters Representative will make an election under Code Section 754, if requested in writing by another Member.", "snippet_links": [{"key": "tax-matters-representative", "type": "definition", "offset": [4, 30]}, {"key": "election-under", "type": "clause", "offset": [44, 58]}, {"key": "code-section", "type": "definition", "offset": [59, 71]}, {"key": "in-writing", "type": "clause", "offset": [90, 100]}], "hash": "0e01ef2f435d36d7cb3fd7bca5cff6b6", "id": 3}, {"size": 3, "samples": [{"hash": "g1u89tJdMxI", "uri": "/contracts/g1u89tJdMxI#section-754", "label": "Collective Bargaining Agreement", "score": 27.3800983429, "published": true}, {"hash": "938TTgN1Fxv", "uri": "/contracts/938TTgN1Fxv#section-754", "label": "Collective Bargaining Agreement", "score": 22.1909656525, "published": true}], "snippet": "40 Permanent and temporary positions will be posted as required by Article XIII. Casual positions 41 will not be posted. Permanent and temporary positions will be made available to permanent 42 bargaining unit employees. Casual positions will not.", "snippet_links": [{"key": "temporary-positions", "type": "definition", "offset": [17, 36]}, {"key": "as-required-by", "type": "clause", "offset": [52, 66]}, {"key": "article-xiii", "type": "clause", "offset": [67, 79]}, {"key": "casual-positions", "type": "clause", "offset": [81, 97]}, {"key": "available-to", "type": "definition", "offset": [168, 180]}, {"key": "bargaining-unit-employees", "type": "clause", "offset": [194, 219]}], "hash": "9ab201f677a6ba8266d2390e5cdb2206", "id": 4}, {"size": 2, "samples": [{"hash": "5Liaw3ZNm86", "uri": "/contracts/5Liaw3ZNm86#section-754", "label": "Collective Bargaining Agreement", "score": 22.4291572571, "published": true}, {"hash": "2VeMCHsYBgM", "uri": "/contracts/2VeMCHsYBgM#section-754", "label": "Collective Bargaining Agreement", "score": 22.3935661316, "published": true}], "snippet": "District vehicle carrying a special education student must have a Bus Student Supervisor on board 31 if a Bus Student Supervisor requirement is specified in the student's Individualized Education Program 32 (IEP).", "snippet_links": [{"key": "district-vehicle", "type": "definition", "offset": [0, 16]}, {"key": "special-education-student", "type": "definition", "offset": [28, 53]}, {"key": "student-supervisor", "type": "definition", "offset": [70, 88]}, {"key": "on-board", "type": "definition", "offset": [89, 97]}, {"key": "the-student", "type": "clause", "offset": [157, 168]}, {"key": "individualized-education-program", "type": "clause", "offset": [171, 203]}], "hash": "c9be4d3d3a9baeba91969f89d30f20ee", "id": 5}, {"size": 2, "samples": [{"hash": "kUriWC5PhMl", "uri": "/contracts/kUriWC5PhMl#section-754", "label": "General Partnership Agreement (DCP Midstream Partners, LP)", "score": 23.8501033783, "published": true}, {"hash": "1vRO8MaLtqD", "uri": "/contracts/1vRO8MaLtqD#section-754", "label": "General Partnership Agreement (DCP Midstream Partners, LP)", "score": 22.013004303, "published": true}], "snippet": "All items of income, gain, loss, deduction and credit recognized by the Partnership for federal income tax purposes and allocated by the Partners in accordance with the provisions hereof shall be determined without regard to any election under section 754 of the Code which may be made by the Partnership; provided, however, that such allocations, once made, shall be adjusted as necessary or appropriate to take into account those adjustments permitted or required by sections 734 and 743 of the Code.", "snippet_links": [{"key": "all-items", "type": "definition", "offset": [0, 9]}, {"key": "by-the-partnership", "type": "clause", "offset": [65, 83]}, {"key": "federal-income-tax-purposes", "type": "clause", "offset": [88, 115]}, {"key": "in-accordance-with", "type": "clause", "offset": [146, 164]}, {"key": "the-provisions", "type": "clause", "offset": [165, 179]}, {"key": "election-under", "type": "clause", "offset": [229, 243]}, {"key": "the-code", "type": "clause", "offset": [259, 267]}, {"key": "take-into-account", "type": "definition", "offset": [408, 425]}, {"key": "required-by", "type": "definition", "offset": [457, 468]}], "hash": "e8d3882bcd166ef11824467ac24e276d", "id": 6}, {"size": 2, "samples": [{"hash": "9ibH2lLLHX7", "uri": "/contracts/9ibH2lLLHX7#section-754", "label": "Limited Liability Company Agreement (StratCap Digital Infrastructure REIT, Inc.)", "score": 36.0773429871, "published": true}, {"hash": "7Na5nYtRyIr", "uri": "/contracts/7Na5nYtRyIr#section-754", "label": "Limited Liability Company Agreement (Strategic Wireless Infrastructure Fund Ii, Inc.)", "score": 35.1163597107, "published": true}], "snippet": "The Partnership Representative will make an election under Code Section 754, if requested in writing by another Member.", "snippet_links": [{"key": "partnership-representative", "type": "clause", "offset": [4, 30]}, {"key": "election-under", "type": "clause", "offset": [44, 58]}, {"key": "code-section", "type": "definition", "offset": [59, 71]}, {"key": "in-writing", "type": "clause", "offset": [90, 100]}], "hash": "fa71d07548aa0aca9a1f94758dfcdd16", "id": 7}, {"size": 2, "samples": [{"hash": "cHXZAbA20zD", "uri": "/contracts/cHXZAbA20zD#section-754", "label": "Operating Agreement (Majestic Star Casino Capital CORP)", "score": 21.0, "published": true}, {"hash": "4GPNxskflLU", "uri": "/contracts/4GPNxskflLU#section-754", "label": "Operating Agreement (Majestic Star Casino Capital CORP)", "score": 21.0, "published": true}], "snippet": "If an election under Code Section 754 is in effect with respect to the interest of any Member, the allocation of items of income, deduction, gain or loss shall be governed by the regulations thereunder, but such allocation shall not be reflected on the Company books.", "snippet_links": [{"key": "election-under", "type": "clause", "offset": [6, 20]}, {"key": "code-section", "type": "definition", "offset": [21, 33]}, {"key": "in-effect", "type": "definition", "offset": [41, 50]}, {"key": "with-respect-to", "type": "clause", "offset": [51, 66]}, {"key": "the-interest", "type": "definition", "offset": [67, 79]}, {"key": "allocation-of-items", "type": "clause", "offset": [99, 118]}, {"key": "gain-or-loss", "type": "clause", "offset": [141, 153]}, {"key": "the-regulations", "type": "clause", "offset": [175, 190]}, {"key": "company-books", "type": "clause", "offset": [253, 266]}], "hash": "8d2530a296a7f7b134af3c44b025fb30", "id": 8}, {"size": 2, "samples": [{"hash": "cCU7ORXj4mR", "uri": "/contracts/cCU7ORXj4mR#section-754", "label": "Collective Bargaining Agreement", "score": 21.8432579041, "published": true}], "snippet": "2 All trips will be bid on a continuously rotating seniority basis with the most senior driver and 3 continuing on down the seniority list to the least senior driver. At the bidding meetings, 4 beginning with the most senior driver, each driver may choose two (2) trips from the list as a 5 beginning bid. All remaining trips will be bid, in order, one at a time through the remainder of 6 the list by seniority. 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Distributions. Within 30 days following the end of each Distribution Period, an amount equal to 100% of Available Cash with respect to such Distribution Period shall, subject to section 15-309 of the Delaware Act, be distributed in accordance with this Article 4 by the Partnership to the Partners in accordance with their respective Percentage Interest.", "snippet_links": [{"key": "all-items", "type": "definition", "offset": [0, 9]}, {"key": "by-the-partnership", "type": "clause", "offset": [65, 83]}, {"key": "federal-income-tax-purposes", "type": "clause", "offset": [88, 115]}, {"key": "in-accordance-with", "type": "clause", "offset": [146, 164]}, {"key": "the-provisions", "type": "clause", "offset": [165, 179]}, {"key": "election-under", "type": "clause", "offset": [229, 243]}, {"key": "the-code", "type": "clause", "offset": [259, 267]}, {"key": "take-into-account", "type": "definition", "offset": [408, 425]}, {"key": "required-by", "type": "definition", "offset": [457, 468]}, {"key": "following-the", "type": "definition", "offset": [533, 546]}, {"key": "distribution-period", "type": "clause", "offset": [559, 578]}, {"key": "equal-to", "type": "definition", "offset": [590, 598]}, {"key": "available-cash", "type": "definition", "offset": [607, 621]}, {"key": "with-respect-to", "type": "clause", "offset": [622, 637]}, {"key": "subject-to-section-15", "type": "clause", "offset": [670, 691]}, {"key": "delaware-act", "type": "definition", "offset": [703, 715]}, {"key": "article-4", "type": "definition", "offset": [756, 765]}, {"key": "percentage-interest", "type": "definition", "offset": [837, 856]}], "hash": "07871bde8cfd9c23972bcd90e8c2675d", "id": 10}], "next_curs": "ClQSTmoVc35sYXdpbnNpZGVyY29udHJhY3RzcjALEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2IhRzZWN0aW9uLTc1NCMwMDAwMDAwYQyiAQJlbhgAIAA=", "clause": {"size": 47, "title": "Section 754", "parents": [["allocations-and-distributions", "Allocations and Distributions"], ["allocations-for-tax-purposes", "Allocations for Tax Purposes"], ["allocations", "Allocations"], ["tax-matters-representative", "Tax Matters Representative"], ["no-other-changes", "No Other Changes"]], "children": [["section-912", "Section 9.1.2"], ["section-756", "Section 7.5.6"], ["section-813", "Section 8.1.3"], ["", ""], ["nature-of-sellers-obligations", "Nature of Sellers\u2019 Obligations"]], "id": "section-754", "related": [["section-754-election", "Section 754 Election", "<strong>Section 754</strong> Election"], ["code-section-754-adjustment", "Code Section 754 Adjustment", "Code <strong>Section 754</strong> Adjustment"], ["code-section-754-adjustments", "Code Section 754 Adjustments", "Code <strong>Section 754</strong> Adjustments"], ["section-338-election", "Section 338 Election", "Section 338 Election"], ["section-336e-election", "Section 336(e) Election", "Section 336(e) Election"]], "related_snippets": [], "updated": "2025-09-20T04:23:06+00:00", "also_ask": ["What strategic advantages or disadvantages arise from electing Section 754 adjustments?", "What are the essential drafting elements to ensure a valid and effective Section 754 election?", "What are the most common pitfalls or fatal flaws that could invalidate a Section 754 election?", "How does Section 754 compare to alternative basis adjustment mechanisms in partnerships?", "What are the key enforceability challenges or IRS scrutiny points for Section 754 elections in audits or litigation?"], "drafting_tip": "Specify the applicability of Section 754, clarify the election process, and outline notification requirements to ensure compliance, prevent disputes, and facilitate proper tax treatment.", "explanation": "Section 754 is a provision in the Internal Revenue Code that allows partnerships to adjust the basis of partnership property when there is a transfer of a partnership interest or a distribution of property. When a partner sells their interest or receives a distribution, the partnership can elect to make a Section 754 adjustment, which aligns the inside basis of partnership assets with the outside basis of the partner\u2019s interest. This adjustment ensures that gains or losses are properly allocated among partners and prevents double taxation or tax benefits. The core function of Section 754 is to provide tax equity and accuracy in basis calculations following certain partnership transactions."}, "json": true, "cursor": ""}}