HomeMy WebLinkAbout0059 between the partners so that the Limited Partner first receives out
of said profits on a cumulative basis the sum of $1,200,000.00
before any payments or distributions are made to the partners under
any other provision of this agreement. For purposes of this para-
graph gain or loss shall be determined on the basis of $26,000.00
per acre. After said profits have been paid to the Limited Partner,
the partners shall distribute the remaining profit from any such
sales under this paragraph in the percentages set out in paragraph
5 above. "Site Improvement" shall be regarded as commenced if any
part of the real property described in Schedule I has been subs-
tantially improved in accordance with a master development plan.
It is the understanding of the parties that the commencement of
substantial improvements in accordance with the Master Plan tor
the land identified in Schedule I will void the right of the
Limited Partner to additional profits under this sub-paragraph
upon the subsequent sale of any portion of the land described in
Schedule I. This paragraph shall not apply to dedications for
public use or utility easements.
8A. TAX PROVISIONS. This agreement is intended to and shall
constitute a partnership agreement for U.S. Federal income tax pur-
poses within the meaning of Section 761(a) of the United States
Revenue Code of 1954, as amended. The Partnership's taxable income
for Federal income tax purposes shall be determined under the
provisions of Subchapter K'of Chapter 1 of Subtitle A of said Code
relating to partners and partnerships, or superseding legislation
enacted in lieu thereof, and for the first taxable year and any
other taxable y~ar where applicable there shall be duly and timely
filed a~partnership tax return in which -~he following elections
shall be made: _8_ 804K~+VIJ PACE ~
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