ATX K-1 allocation of LLC member's share of liabilities

[David]

I have an LLC which has active member-managers as well as passive LLC members. The ATX K-1 is allocating all the nonrecourse and qualified nonrecourse debt to all the members regardless of whether they are member-managers or just members and regardless of whether they are active or passive members.

Is ATX treating this correctly or is there something else I need to do. If my understanding of LLC member's share of liabilities is correct, passive LLC members shouldn't be allocated a share of LLC debt, should they?

Thanks for your help.

[kcjenkins]

There is, on the input sheet where you set up each member, a section lower down where you can set the allocations if they are something other than ratable to all members. For example, you might have a situation where all income and losses are allocated to the active members, and none to the limited members. This is often done in Family LLCs, where the minor children are treated as limited members, having only an ownership interest, but not sharing in the income and losses, for example.