Distributive Share

Distributive Share means:
the allocation of any item or kind of income, gain, loss, deduction, or credit to a partner. This allocation is generally determined by the partnership agreement. However, a partner's distributive share will be determined by his or her interest in the partnership if:

1. the partnership does not provide for the allocation of any item of income gain, loss, deduction, or credit, or.

2. the allocation of any item of income, gain, loss, deduction, or credit does not have substantial economic effect. Former IRC (check if this IRC provision is current here) §704(a).