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4. In the event the Petitioner is contractually
required, by the terms of the original Partnership
Agreement, to make any additional cash contribution in
a year ending subsequent to the date of this agreement,
the Petitioner shall receive an ordinary deduction for
any such cash contribution in the year paid.
5. Tentative investment credit will be allowed
with respect to the partnership, based on qualified
investment equal to the Petitioner's partnership
percentage times two-thirds times the qualified basis
of the partnership as set forth in Exhibit A, which is
attached hereto and incorporated herein by reference.
No other investment credit from the partnership will be
allowed.
6. If any investment credit was claimed by the
Petitioner which is not allowable under paragraph 5.
for any year(s) which was not disallowed by the
Internal Revenue Service and for which the statute of
limitations would bar assessment, the amount of said
credit will be added to the corrected tax in the first
open year.
7. The petitioner's allocable share of any income
from the partnership attributable to the repayment of
the partnership's recourse and non-recourse liabilities
(non-cash income), shall not be includable in income.
In addition, the Petitioner will not realize any income
as a result of the forgiveness of, or other release of
the related recourse and non-recourse liabilities. If
any such non-cash income was reported by the Petitioner
in any year, then a deduction shall be allowed in that
amount. If such deduction is with respect to a year
for which refunds are barred by reason of the statute
of limitations, such deduction will be allowable in the
first open year.
8. If any losses or deductions attributable to
the partnership were claimed by the Petitioner for any
year(s) which were not disallowed by the Internal
Revenue Service and for which the statute of
limitations would bar assessment, the deduction
allowable pursuant to paragraph 2. will be reduced,
starting with the initial contribution year, by the
amount of loss reported for years closed by the statute
of limitations.
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