How do foreign partners track outside basis in a U.S. LLC partnership — does LLC debt count?
I'm a foreign partner with a 30% interest in a multi-member U.S. LLC taxed as a partnership. The LLC took out a $500,000 nonrecourse bank loan to buy equipment. My CPA mentioned 'outside basis' affects how much loss I can deduct and how much I can take out tax-free. Does the LLC's debt actually add to my outside basis as a foreign partner the same way as a U.S. partner?
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