Which of the following liabilities would be considered nonrecourse?

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Nonrecourse liabilities are those where the lender can only take the property securing the loan if the borrower defaults on the loan. In this case, the $20,000 real estate loan is an example of a nonrecourse liability. The bank is only able to take the real estate if the taxpayer stops making payments on the loan. The other options, a bank loan and credit card debt, are both examples of recourse liabilities, as the taxpayer is personally liable for the repayment of these debts.

Which of the Following Liabilities Would Be Considered Nonrecourse