Limited Partnership

Can Limited Partner claims the recourse loan if the partnership default?

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Hi @A11, I think this would be out of the scope of the Series 7, but if you’re interested, this article Allocating LLC recourse debts does a good job summarizing various situations.

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I agree with @Justin here. It’s important to know what recourse debt is and if it adds to basis (it does). Specific default scenarios in conjunction with recourse debt are generally not important for the exam.