X is the general partner with a 20% interest, and Y is the limited partner with an 80% interest in the XY Partnership.

X is the general partner with a 20% interest, and Y is the limited partner with an 80% interest in the XY Partnership. How is X's basis affected if Y guarantees a partnership nonrecourse loan of $50000 to the bank? (Assuming no waiver or additional contribution requirements exist)

• X gets a $10000 increase in basis
• X gets a $40000 increase in basis
• X gets a $50000 increase in basis
• X gets no increase in basis