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How do I assign a mortgage as a "Recourse" financing instead of "Non Recourse" financing
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 assigned 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 I default on the loan(s), they can still come after me personally. Is there a way to assigned this financing or 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"? If not, how do I input it so it will show as "Recourse" debt on the K-1?
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‎June 9, 2020
7:29 AM