Sch K-1 error. Liability shows as recourse but software says it should be nonrecourse

[karen6121]

Hi, I am doing a business return, form 1065. This recourse is a loan agreement from partners to LLC.

Please help?

[DaveF1006]

The portion for which one or more partners bear an economic risk of loss is treated as a recourse liability for basis purposes and allocated exclusively to the partner or partners who bear that risk of loss. The remainder is treated as a nonrecourse liability.

Look in Part 2 Box K of the form where it references profit,loss,capital. Look and see what is entered for recourse and non-recourse and see if this is what Turbo Tax is referencing from. 

[karen6121]

I think I over complicated things.

Holding company is owned by 2 partners.

Subsidiary company is owned by Holding company. Subsidiary is pass-through entity so no tax return is needed since it flows into Holding company tax return Form 1065.

I fixed my error by reclassing the holding company contribution.

Your thoughts helped me to change my thinking and fix my problems! Thank you for your help!

[steph508]

If llc partnership is owned by domestic partners no other members where does the recourse (c.c. debt) go?