Lower tier partnership is owned by an upper tier partnership. The upper tier partnership guaranteed the loan and so the loan is recourse to the upper tier partnership. The K-1 to the upper tier partnership reflects recourse. However the partners of the upper tier partnership did not guarantee the loan. Does the k-1 issued to the partners of the upper tier partnership still reflect recourse liability even thought those partners have not guaranteed it?
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Partnership allocation of recourse liabilities - tiered partnership
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