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Partners X and Y own the XY partnership. XY owns a building with a book value/tax basis of $800,000 and an associated nonrecourse debt of
Partners X and Y own the XY partnership. XY owns a building with a book value/tax basis of $800,000 and an associated nonrecourse debt of $900,000. All of the depreciation on the building has been allocated to Y, and the original cost of the building was $1,100,000. X is allocated 65% of the partnership gains and losses, and Y gets the other 35%. How much of the nonrecourse debt is allocated to each partner?
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