- allocable share of income
- Certain entities receive conduit treatment under the Federal income tax law. This means the earned income or loss is not taxed to the entity, but such amounts are allocated to the owners or beneficiaries thereof, regardless of the magnitude or timing of corresponding distributions. The portion of the entity's income that is taxed to the owner or beneficiary is the allocable share of the entity's income or loss for the period. Such allocations are determined by(1) the partnership agreement relative to the partners,(2) a weighted-average stock ownership computation relative to shareholders of an S corporation, and(3) the controlling will or trust instrument relative to the beneficiaries of an estate or trust
Black's law dictionary. HENRY CAMPBELL BLACK, M. A.. 1990.