Partner basis and K-1 with recourse loans

I'm not a partnership specialist and came across a few new things this year. Of course, the basis was changed to tax basis which I had read about. My client is a limited partner in an LLC. On the K-1 there are amounts shows in the liability section under non recourse and qualified non recourse financing. It is my understanding that these amounts don't affect basis when the partner is a limited partner because the lender (the partnership invests in real estate) cannot come after the limited partner in case there's a default on the loan. Any thoughts on this?

My second question involves section J on the K-1. There are changes in the beginning and ending percentages for Profit, Loss and Capital. Loss percentage went from Beginning 0.1 to nothing filled out under Ending. Is this correct?

I'm not a partnership specialist and came across a few new things this year. Of course, the basis was changed to tax basis which I had read about. My client is a limited partner in an LLC. On the K-1 there are amounts shows in the liability section under non recourse and qualified non recourse financing. It is my understanding that these amounts don't affect basis when the partner is a limited partner because the lender (the partnership invests in real estate) cannot come after the limited partner in case there's a default on the loan. Any thoughts on this?

All categories of debt -- recourse, nonrecourse (what I sometimes call "regular nonrecourse" debt), and qualified nonrecourse -- are included in what I call the partner's "debt basis" in his/her interest in the partnership. What I call the partner's "equity basis" may or may not be equal to the amount of the capital account. Debt basis plus equity basis equals total basis.

A separate issue is: For how much is the partner considered to be "at risk" under section 465? Answer: The amount of the partner's equity basis plus his/her share of recourse debt plus his/her share of qualified nonrecourse debt. The partner is not "at risk" for his/her share of "regular nonrecourse" debt.

My second question involves section J on the K-1. There are changes in the beginning and ending percentages for Profit, Loss and Capital. Loss percentage went from Beginning 0.1 to nothing filled out under Ending. Is this correct?

I don't think we have enough information, or maybe I don't understand the question. Was this a final K-1? If not a final K-1, was there some change in the partnership agreement that made the partner's percentage go to "zero"?

Thanks! That makes sense, all liabilities increase basis but sec 465 limits how much loss the partner can take and he can't take a loss for non-recourse debt because he's a limited partner.
About my second question, the firm that prepared the K-1 went from GAAP to tax basis reporting and it's not a final K-1. That's all I know. In which situation(s) can a partner be allocated a zero share in the losses (besides a change in the partnership agreement)?

and he can't take a loss for non-recourse debt because he's a limited partner.

No, he can’t “take a loss for non-recourse debt” because he’s not economically at-risk on said debt.

In which situation(s) can a partner be allocated a zero share in the losses (besides a change in the partnership agreement)?

When that partner isn’t economically at risk for the loss.

and he can't take a loss for non-recourse debt because he's a limited partner.

No, he can’t “take a loss for non-recourse debt” because he’s not economically at-risk on said debt.

In which situation(s) can a partner be allocated a zero share in the losses (besides a change in the partnership agreement)?

When that partner isn’t economically at risk for the loss.

As Jeff noted, the fact that the partner is a limited partner is not the reason the partner cannot deduct the loss. The reason that the partner cannot deduct the loss is that he may be limited by the section 465 "at risk" rules.

In general, the limited partner's share of the partnership loss is allocated to the limited partner and is shown on his K-1, regardless of whether he is "at risk" or not. Whether the partner can currently deduct that allocated loss depends, first, on whether he has sufficient basis (e.g., section 704(d) and section 752), second, whether he is "at risk" (section 465), third, whether he is limited by the section 469 passive loss rules, and fourth, whether he is limited by the section 461(l) rules on excess business losses.