LLC member received a large distribution from an LLC in 2017 from a non-recourse financing. Plenty of basis and income so no limits from those. The LLC properly allocated the int it paid attributable to that distribution on line 13W of the 2017 K-1. Not feasible for the LLC member to have the LLC record a note against the LLC's member's newly acquired residence.
Is there any exception in the regs that covers a situation like this so that the interest traceable to the purchase of the residence is deductible?