New LLC & Loans

[nypreparer]

One member of a brand new LLC (1065 return) took out a loan in his name to purchase property to be used in the business. On the K1, I'm entering the amount of the property contributed under the appropriate line item but am I'm also entering it under recourse loan correct?

[Beersheba]

I don't think it should be listed as any loan on the partnership books. It should be part of the partner's capital account.

Appears to me to be a personal loan, which should increase his basis in the partnership, and the interest would be potentially deductible on Sch A, Form 4952.