Are liabilities that are general in nature like accounts payable and accruals considered recourse or non recourse to the general partner?
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Recourse. (non recourse are loans that have property pledged as collateral) -
So the accounts payable would be recourse to the general partner?Originally posted by John of PA View PostComment
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Recourse loans often have pledged collateral too, so that does nothing to define the type of liability.Originally posted by John of PA View Post
We can guess the question arises while trying to establish partner basis. Here is an article that seems to capture the issues pretty well.
Here is a more scholarly article (there are plenty to be found, very easily) that indicates payables aren't even considered a liability for a cash-basis partnership.
"You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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