Which One of the Following Is a True Statement Regarding

question 39

Multiple Choice

Which one of the following is a true statement regarding the allocation of partnership debt among the partners for purposes of calculating basis?

• A) No debt is allocated to LLC members because they are not liable for entity debts.
• B) Nonrecourse debt is not allocated to general partners unless they personally guarantee the debt.
• C) In a limited partnership, debt is only allocated to general partners.
• D) In a limited liability partnership, debt is allocated among the managing partners, but not the partners with "limited liability."
• E) For basis purposes, partnership debt is allocated among the partners even if no partner is personally liable for the debt.

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