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    6198 at Risk Limitation

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    jlusong89
    This document is IRS Form 6198 which is used to calculate the amount of loss from an activity that a taxpayer can deduct after applying the at-risk rules. The form has the taxpayer provide information about their profit/loss from the activity for the current year and then makes calculations to determine how much of the loss is deductible based on the amount the taxpayer has at risk in the activity. It also addresses potential passive activity loss limitations that may apply.

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    © All Rights Reserved
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    6198 at Risk Limitation

    Uploaded by

    jlusong89
    21 views1 page
    This document is IRS Form 6198 which is used to calculate the amount of loss from an activity that a taxpayer can deduct after applying the at-risk rules. The form has the taxpayer provide information about their profit/loss from the activity for the current year and then makes calculations to determine how much of the loss is deductible based on the amount the taxpayer has at risk in the activity. It also addresses potential passive activity loss limitations that may apply.

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    This document is IRS Form 6198 which is used to calculate the amount of loss from an activity that a taxpayer can deduct after applying the at-risk rules. The form has the taxpayer provide information about their profit/loss from the activity for the current year and then makes calculations to determine how much of the loss is deductible based on the amount the taxpayer has at risk in the activity. It also addresses potential passive activity loss limitations that may apply.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    21 views1 page

    6198 at Risk Limitation

    Uploaded by

    jlusong89
    This document is IRS Form 6198 which is used to calculate the amount of loss from an activity that a taxpayer can deduct after applying the at-risk rules. The form has the taxpayer provide information about their profit/loss from the activity for the current year and then makes calculations to determine how much of the loss is deductible based on the amount the taxpayer has at risk in the activity. It also addresses potential passive activity loss limitations that may apply.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 1

    Form 6198

    (Rev. November 2009)


    Department of the Treasury
    Internal Revenue Service
    At-Risk Limitations

    Attach to your tax return.

    See separate instructions.
    OMB No. 1545-0712
    Attachment
    Sequence No. 31
    Name(s) shown on return Identifying number
    Description of activity (see page 2 of the instructions)
    Part I Current Year Profit (Loss) From the Activity, Including Prior Year Nondeductible Amounts.
    See page 2 of the instructions.
    1 Ordinary income (loss) from the activity (see page 2 of the instructions) . . . . . . . . 1
    2 Gain (loss) from the sale or other disposition of assets used in the activity (or of your interest in
    the activity) that you are reporting on: . . . . . . . . . . . . . . . . . . .
    a Schedule D . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a
    b Form 4797 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2b
    c Other form or schedule . . . . . . . . . . . . . . . . . . . . . . . . 2c
    3 Other income and gains from the activity, from Schedule K-1 of Form 1065, Form 1065-B, or
    Form 1120S, that were not included on lines 1 through 2c . . . . . . . . . . . . . 3
    4 Other deductions and losses from the activity, including investment interest expense allowed
    from Form 4952, that were not included on lines 1 through 2c . . . . . . . . . . . 4
    ( )
    5 Current year profit (loss) from the activity. Combine lines 1 through 4. See page 3 of the
    instructions before completing the rest of this form . . . . . . . . . . . . . . . 5
    Part II Simplified Computation of Amount At Risk. See page 3 of the instructions before completing this part.
    6 Adjusted basis (as defined in section 1011) in the activity (or in your interest in the activity) on the
    first day of the tax year. Do not enter less than zero . . . . . . . . . . . . . . . 6
    7 Increases for the tax year (see page 3 of the instructions) . . . . . . . . . . . . . 7
    8 Add lines 6 and 7 . . . . . . . . . . . . . . . . . . . . . . . . . . 8
    9 Decreases for the tax year (see page 4 of the instructions) . . . . . . . . . . . . . 9
    10a Subtract line 9 from line 8 . . . . . . . . . . . .

    10a
    b If line 10a is more than zero, enter that amount here and go to line 20 (or complete Part III).
    Otherwise, enter -0- and see Pub. 925 for information on the recapture rules . . . . . . 10b
    Part III Detailed Computation of Amount At Risk. If you completed Part III of Form 6198 for the prior year, see
    page 4 of the instructions.
    11 Investment in the activity (or in your interest in the activity) at the effective date. Do not enter
    less than zero . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
    12 Increases at effective date . . . . . . . . . . . . . . . . . . . . . . . 12
    13 Add lines 11 and 12 . . . . . . . . . . . . . . . . . . . . . . . . . 13
    14 Decreases at effective date . . . . . . . . . . . . . . . . . . . . . . . 14
    15 Amount at risk (check box that applies):
    a At effective date. Subtract line 14 from line 13. Do not enter less than zero.
    b
    From your prior year Form 6198, line 19b. Do not enter the amount from line 10b of
    your prior year form.

    15
    16 Increases since (check box that applies):
    a Effective date b The end of your prior year . . . . . . . . . . . . . . 16
    17 Add lines 15 and 16 . . . . . . . . . . . . . . . . . . . . . . . . . 17
    18 Decreases since (check box that applies):
    a Effective date b The end of your prior year . . . . . . . . . . . . . . 18
    19a Subtract line 18 from line 17 . . . . . . . . . . .

    19a
    b If line 19a is more than zero, enter that amount here and go to line 20. Otherwise, enter -0- and
    see Pub. 925 for information on the recapture rules . . . . . . . . . . . . . . . 19b
    Part IV Deductible Loss
    20 Amount at risk. Enter the larger of line 10b or line 19b . . . . . . . . . . . . . 20
    21 Deductible loss. Enter the smaller of the line 5 loss (treated as a positive number) or line 20.
    See page 8 of the instructions to find out how to report any deductible loss and any carryover . 21
    ( )
    Note: If the loss is from a passive activity, see the Instructions for Form 8582, Passive Activity Loss Limitations, or the Instructions for
    Form 8810, Corporate Passive Activity Loss and Credit Limitations, to find out if the loss is allowed under the passive activity
    rules. If only part of the loss is subject to the passive activity loss rules, report only that part on Form 8582 or Form 8810,
    whichever applies.
    For Paperwork Reduction Act Notice, see page 8 of the instructions. Cat. No. 50012Y Form 6198 (Rev. 11-2009)

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