Allocation

Allocation means:
the apportionment or assignment of income or expense (in relation to a taxpayer) for various tax purposes. For example, between permanent establishments in various jurisdictions, or income and expense items of a trust or estate are allocated between the corpus and income components. Also, income, expense, credits, gains, and losses are allocated to the various partners in a partnership and the shareholders of an S corporation. Former IRC (check if this IRC provision is current here) §358(b).

See also other Tax Terms and Definitions in U.S.A.

apportionment.