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Partnership allocation of recourse liabilities - tiered partnership

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    Partnership allocation of recourse liabilities - tiered partnership

    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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