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.
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!