I have 2 separate mortgages on 2 separate rental properties and these are listed on my TT balance sheet. On the K-1's, they are showing up as "Qualified Non Recourse Financing". Previously, when my CPA did my taxes, this debt was listed on the K-1's as "Recourse" debt. I spoke to them and their logic was even though the bank will foreclose on the property should you default on the loan(s), they can still come after you personally. Is there a way to input this debt amount as a mortgage in the balance sheet and have it listed as "Recourse" debt on the K-1 instead of "Qualified Nonrecourse financing"?
