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March 5, 2025
Question

How do you change recourse debt on the Partners Liabilities Smart worksheet - Line D (TurboTax Business) to non-recourse debt?

  • March 5, 2025
  • 1 reply
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    1 reply

    PatriciaV
    Employee
    March 11, 2025

    If you need to change the character of the partners' liabilities, you may need to adjust your balance sheet entries. 

     

    Line D Recourse: The total of column (b), lines 15, 17, 19a and 20 (beginning) and column (d), lines 15, 17, 19a and 20 (ending).

     

    Any amount entered on lines 16 or 19b will be reported as qualified non-recourse. Line 18 is for all other non-recourse debt.

     

    Nonrecourse liabilities are allocated to all partners according to their profit percentage. Other liabilities are allocated only to general partners according to their loss percentage.

     

    Limited Liability Companies: Recourse liabilities, entered or calculated to the Partner's Liabilities Smart Worksheet, page 6, line D, will NOT be allocated to members unless a special allocation code is entered. Enter a special allocation code ("P" for Profit percentage, "L" for Loss percentage, "O" for Ownership percentage, or any other valid code) in the column to the left of the amount.

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