The ABC Partnership has a non-recourse liability that it incurred by borrowing from an unrelated bank. It

Question:

The ABC Partnership has a non-recourse liability that it incurred by borrowing from an unrelated bank. It is secured by an apartment building owned and managed by the partnership. The liability is not convertible into an equity interest. How does this liability affect the at-risk basis of general partner Anna and limited partner Bob?

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...