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N and O are limited partners. How does this change in facts affect the calculation of each partner's basis in the partnership? Allocation of Recourse Debt. Individuals A and B are general partners and individual L is a limited partner in the ABL Partnership. Partnership losses are allocated 40% to A,35% to B, and 25% to L. As of December 31 of the current year, the partnership has $50,000 of recourse debt. The partnership's balance sheet as of December 31 is as follows: How would the $50,000 of recourse debt be allocated to A,B, and L ? 9.27 Relief of Debt in Excess of Basis. Corporation C contributed land used in its business to the Beta Partnership in exchange for a 40% general interest in partnership capital, profits, and loss. The land had a $320.000 basis to the corporation and an appraised fair market value of $850.000, and was subject to a $635.000 recourse mortgage. Beta assumed the mortgage in the exchange transaction; as of the date of the exchange, Beta had no other liabilities. a. What are the tax consequences to Corporation C of its contribution of the land to Beta? What initial basis does Corporation C have in its partnership interest