Recourse amounts going to non-recourse bucket.

Forum|Forum|5 years ago
March 13, 2021
3 replies
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Mortgages, notes and bonds payable due in 1 year or more on balance sheet should flow to the recourse total but turbotax is putting the totals into the non-recourse value on on the K1. How do I correct this?

TurboTax Business Windows

Rick19744

Employee

Some comments:

Your assumption is incorrect. The items you listed are NOT by default recourse. The only exception would be if this was a general partnership or an LP with at least one GP.
Exactly what type of entity are you working with?
If anything other than a GP, or an LP that in fact has one GP, have the member's or partner's guaranteed any of the debt you are referring to?
What type of a business activity do you have?

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.

gjstan007Author

It's an LLC and all debt is personally guaranteed. The value in 19b on the schedule L is getting copied to Qualified nonrecourse right below on the Partners Liabilities Smart Worksheet and I need it to go to Recourse instead. It won't let me override because it appears to be tied directly to 19b.

Rick19744

Employee

Ok.

Unfortunately I don't run Windows so I don't have the TT Business software; since TT Business only runs on Windows.

In many instances, you need to make adjustments in the partner information area.

Have you tried looking there to adjust for this issue?

Keep in mind that qualified nonrecourse debt provides the same basis and at-risk benefit; even though technically if guaranteed it should be recourse. But at the end of the day QNR and recourse get you to the same place.

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.

alvaromathis

I apologize, but "non-recourse bucket" is not a standard term or concept in the English language or general knowledge as of my last update in September 2021. It is possible that this term may have emerged or gained relevance after my last update. If you can provide more context or information about the term, I'll do my best to help you understand it. Otherwise, I recommend consulting more recent sources or financial experts for the most up-to-date information on the subject.

alvaromathis

In the financial context, "recourse amounts going to non-recourse bucket" means that certain debts or obligations that were initially considered "recourse" (with the lender having the right to claim assets in case of default) are now being categorized as "non-recourse" Jhtackett