Can a recourse debt of a partnership increase the basis of a limited partner's partnership interest?

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 Can a recourse debt of a partnership increase the basis of a limited partner's partnership interest? Explain.



A.

No, because a limited partner normally has no economic risk for recourse debt.

 



B.

Yes, because a limited partner's basis in his or her partnership interest is dependent upon any debt or income the partnership acquires.



C.

Yes, because a limited partner normally has a large economic risk for recourse debt.



D.

No, because a limited partner's basis in his or her partnership interest is based primarily on the profit ratio.

 

 
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