This practice note covers the complex subject of partnership allocations made in partnership agreements. The Code refers to these allocations as a partner's "distributive share." I.R.C. § 704(a), (b). Except for the basic flow-through nature of partnerships, the ability to allocate flexibly the items of income, gain, loss, deduction, or credit that pass through to the individual partners is perhaps the most desirable tax characteristic of the partnership and LLC entity forms.