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A BANK FORECLOSED ON A HOTEL (LLC) AS OF 11/15/2010. THIS WAS ANON-RECOURSE LOAN. I JUST WANT TO CONFIRM THAT THIS WOULD REDUCETHE PARTNER'S BASIS BY THEIR SHARE OF THE FORECLOSED LOAN.
Optional Information: State/Country relating to question: North Carolina
Hi,Probably yes, but the answer to your question would depend on the written terms of the partnership agreement. Most general partnerships involving hotels provide that all partners shall be equally responsible for for all liabilities and assets. If the hotel was considered an asset prior to the foreclosure, the loss of that property would reduce each partner's asset value by an amount equal to the percentage of ownership of the hotel.I hope my answer helps with your understanding. Thank you for using Just Answer!
Experience: Attorney & Counselor at Law with significant real estate law experience.