Explain what is meant by a safe harbor allocation. In doing so you should read the applicable
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Question:
Explain what is meant by a safe harbor allocation. In doing so you should read the applicable parts of
the b regulations, and discuss:
The threerequirements safe harbor
The alternate safe harbor
The deemed in accordance with the partners interests safe harbor
This should include a discussion of the terms required in the agreement and a how the first two apply
to recourse deductions and b the third applies to nonrecourse deductions, including what the
difference is between the two.
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