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In the calculation of partners' Outside Basis, we add back any increase in Partners' liabilities. I understand this to include the partnership's accounts payable. For At-Risk basis, we are to remove from this any nonrecourse liabilities. It is clear that nonrecourse debt amounts should be removed, but are the partnership's accounts payable considered included in the nonrecourse debts to be removed?
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I assumed that partners were never liable for the accounts payable in their partnerships. Is this not the case? I will pose the question to my clients as well.
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If it's a General Partnership the General Partners would be liable.
If a limited partnership the limited partners would ordinarily not be liable.
If an LLC, the members would ordinarily not be liable.
The more I know the more I don’t know.
