Hi there,
Confused on how to present a "negative" asset like an investment in a K-1 or TIC agreement.
For instance, S-Corp puts $100K into a 50/50 real estate partnership, then after year 1 the rental loss (after depreciation/etc) is -$150K, how would you present the -$50K investment on the S-Corp balance sheet?
^For the above example, yes there is recourse debt on the building to cover the loss in excess of capital contributed.
Thanks in advance!
