I remember (long time ago) that for an investment property purchased by a Limited Partnership, mortgage/loan interest is not deductible by the Limited Partners -- if someone guaranties the mortgage/loan. Is that still the case?
And does that rule also applies to members in LLC -- where the Managing member guaranties the mortgage/loan and other non-operating members do not?
If that rule is still the same, what happens to those interest effectively paid by the ltd partners -- added to ltd partner's cost basis? lost for ever? etc.?
TIA