For a typical contruction loan for an multimember LLC, Where all three parties signed on the debt how do you account for it on 1065 (recourse liabilities)?

[PatriciaV]

Recourse Liabilities are entered under the Balance Sheet topic of Federal Taxes. You may need to overstate your ending assets in order to access this topic from the step-by-step interview. Once you have entered your Balance Sheet through the interview (and it should balance), follow the instructions below, skipping step 4 .

An easier way to enter this loan would be using Forms Mode. 

1. Click the Forms icon in the header, then locate "Form 1065 p4-5" in the left column. 
2. Click the form name to open it in the large window.
3. Scroll down to Schedule L (Balance Sheet per Books). 
4. Enter the amount of the construction loan on Line 17(b) if payable in less than a year or Line 20(b) if payable in 1 year or more.
5. Now scroll down to the Partners' Liabilities Smart Worksheet just below the Balance Sheet.
6. The amount you entered for the loan should appear as Recourse debt.
7. You may choose to allocate this debt by entering a code in the small box in front of the number ("P" for Profit percentage, "L" for Loss percentage, "O" for Ownership percentage). The loan will be allocated to the individual partners' capital accounts (and Schedule K-1) based on this percentage.