Disregarding agreements.
In computing taxes under this chapter a partner or member shall disregard, for purposes of determining the situs of partnership income of partners, all provisions in partnership or limited liability company agreements that do any of the following: 1.
(1)#
Characterize the consideration for payments to the partner or member as services or the use of capital.
(2)#
Allocate to the partner or member, as income from or gain from sources outside this state, a greater proportion of the partner’s or member’s distributive share of partnership or limited liability company income or gain than the ratio of partnership or company income or gain from sources outside this state to partnership or company income or gain from all sources.
(3)#
Allocate to a partner or member a greater proportion of a partnership or limited liability company item of loss or deduction from sources in this state than the partner’s or member’s proportionate share of total partnership or company loss or deduction.
(4)#
Determine a partner’s or member’s distributive share of an item of partnership or limited liability company income, gain, loss or deduction for federal income tax purposes if the principal purpose of that determination is to avoid or evade the tax under this chapter.