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?