Explain what is meant by a $$safe harbor$$ allocation. In doing so you should read the applicable parts of

the $1\mathrm{.}704-1($b$)(2)$ regulations, and discuss:

$1.$ The three$-$requirements safe harbor

$2.$ The alternate safe harbor

$3.$ 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.