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Debt of a limited liability company is allocated among its members using the non-recourse debt allocation rules unless an LLC member has personally guaranteed the
Debt of a limited liability company is allocated among its members using the non-recourse debt allocation rules unless an LLC member has personally guaranteed the debt.Harry's basis in his partnership interest was $10,000 at the beginning of the tax year. For the year, his share of the partnership's loss was $8,000, and he also received a distribution of $4,000. Harry can deduct an $8,000 loss, and he recognizes a gain of $2,000 on the distribution of cash in excess of his remaining basis
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