OWNERSHIP FOR TAX PURPOSES Clause Examples
The "Ownership for Tax Purposes" clause defines which party is considered the owner of an asset or property specifically for tax reporting and liability purposes. In practice, this clause clarifies whether the buyer or seller (or another party) is responsible for reporting income, claiming deductions, or paying taxes related to the asset, regardless of who holds legal title. This is particularly relevant in transactions where legal and tax ownership may not coincide, such as in leases or installment sales. The core function of this clause is to allocate tax responsibilities clearly, thereby preventing disputes and ensuring compliance with tax laws.
OWNERSHIP FOR TAX PURPOSES. Seller agrees that, for purposes of federal and other taxes based on income, Seller will be treated as the owner of the Escrow Fund and that Seller will report all income, if any, that is earned on, or derived from, the Escrow Fund as its income in the taxable year or years in which such income is properly includible and pay any taxes attributable thereto.
OWNERSHIP FOR TAX PURPOSES. Seller agrees that, for purposes of federal and other taxes based on income, Seller will be treated as the owner of 100% of the Escrow Fund, and that Seller will report all income, if any, that is earned on, or derived from, the Escrow Fund as its income, in the taxable year or years in which such income is properly includible and pay any taxes attributable thereto.
OWNERSHIP FOR TAX PURPOSES. The Owner Trust will not take any -------------------------- position inconsistent with its ownership of the Vessel Interest for U.S. federal, state, or local income tax purposes.
OWNERSHIP FOR TAX PURPOSES. Each of Buyer and Sellers agree that, solely for purposes of United States federal and other taxes based on income, and for no other purpose, Buyer shall be treated as the owner of the Escrow Corpus and that Buyer shall report the income, if any, that is earned on, or deemed earned upon, or derived from, the Escrow Corpus as income, if any, in the taxable year or years in which such income is properly includible and pay any taxes attributable thereto.
OWNERSHIP FOR TAX PURPOSES. The Shareholder agrees that, for purposes of federal and other taxes based on income, the Shareholder will be treated as the owner of the Escrow Shares, respectively, and that it will report all income, if any, that is earned on, or derived from, the Escrow Shares as its income, in such proportions, in the taxable year or years in which such income is properly includible and pay any taxes attributable thereto.
OWNERSHIP FOR TAX PURPOSES. For purposes of federal and other taxes based on income, Seller will be treated as owner of the Escrow Fund and shall report all income, if any, that is earned on, or derived from, the Escrow Fund as its income and in the taxable year or years in which such income is properly includible, and pay any taxes attributable thereto. All interest or other income earned under the Escrow Agreement shall be allocated to Seller and reported, to the extent required by law, by the Escrow Agent to the IRS or any other taxing authority, as applicable, on IRS form 1099 or 1042S (or other appropriate form) as income earned from the Escrow Fund by the Seller whether or not said income has been distributed during the year. Any other tax returns required to be filed will be prepared and filed by the Seller with the IRS and any other taxing authority as required by law including but not limited to any applicable reporting or withholding pursuant to the Foreign Investment in Real Property Tax Act (“FIRPTA”). The parties hereto acknowledge and agree that the Escrow Agent shall have no responsibility for the preparation and/or filing of any tax return or any applicable FIRPTA reporting with respect to the Escrow Fund. The Escrow Agent shall withhold any taxes it deems appropriate, including but not limited to required withholding in the absence of proper tax documentation, and shall remit such taxes to the appropriate authorities as it determines may be required by any law or regulation in effect at the time of the distribution.
OWNERSHIP FOR TAX PURPOSES. GRANT OF SECURITY INTEREST; USURY SAVINGS
(a) For income tax purposes, the parties hereto agree that it is their mutual intention that Lessee shall be considered the owner of the Equipment. Accordingly, Lessor agrees (i) to treat Lessee as the owner of the Equipment on its federal income tax return, (ii) not to take actions or positions inconsistent with such treatment on or with respect to its federal income tax return, and (iii) not to claim any tax benefit available to an owner of the Equipment on or with respect to its federal income tax return. The foregoing undertakings by Lessor shall not be violated by Lessor's taking a tax position inconsistent with the foregoing sentence to the extent such a position is required by law or is taken through inadvertence so long as such inadvertent tax position is reversed by Lessor promptly upon its discovery. Lessor shall in no event be liable to Lessee if Lessee fails to secure any of the tax benefits available to the owner of the Equipment.
(b) Lessee hereby grants to Lessor a first security interest in the Equipment, together with all additions. attachments, accessions, accessories and accessions thereto whether or not furnished by the Supplier of the Equipment and any and all substitutions, replacements or exchanges therefore, and any and all insurance and/or other proceeds of the property in and against which a security interest is granted hereunder. Notwithstanding anything to the contrary contained elsewhere in this Agreement, to the extent that Lessor asserts a purchase money security interest in any items of Equipment ("PMSI Equipment"): (i) the PMSI Equipment shall secure only those sums which have been advanced by Lessor for the purchase of the PMSI Equipment. or the acquisition of rights therein, or the use thereof (the "PMSI Indebtedness), and (ii) no other Equipment shall secure the PMSI Indebtedness.
(c) It is the intention of the parties hereto to comply with any applicable usury laws to the extent that any Schedule is determined to be subject to such laws; accordingly, it is agreed that, notwithstanding any provision to the contrary in any Schedule or this Agreement, in no event shall any Schedule require the payment or permit the collection of interest in excess of the maximum amount permitted by applicable law. If any such interest is contracted for, charged, or received under any Schedule or this Agreement, or in the event that all of the principal balance shall be prepaid, so that under any of...
OWNERSHIP FOR TAX PURPOSES. For purposes of federal and other taxes based on income, the owner of the Escrow Fund, and the party to report all income, if any, that is earned on, or derived from, the Escrow Fund as its income, in the taxable year or years in which such income is properly includible and pay any taxes attributable thereto will be the party holding title to the Escrow Fund during such period during the term of this Agreement.
OWNERSHIP FOR TAX PURPOSES. (a) The parties agree that, for purposes of federal and other taxes based on income, prior to the Closing Buyer will be treated as the owner of the Escrow Fund, and that for such period Buyer will report all income, if any, that is earned on, or derived from, the Escrow Fund as its income, in such proportions, in the taxable year or years in which such income is properly includible and pay any taxes attributable thereto.
(b) The parties agree that, for purposes of federal and other taxes based on income, after the Closing Sellers will be treated as the owners of the Escrow Fund, and that for such period Sellers will report all income, if any, that is earned on, or derived from, the Escrow Fund as their income, in such proportion, in the taxable year or years in which such income is properly includible and pay any taxes attributable thereto.
OWNERSHIP FOR TAX PURPOSES. For purposes of federal and other taxes based on income, Limited Partner will be deemed to own the Escrow Fund.