Yes, it is true any 2019 unallowed at-risk loss would have been entered on the appropriate line of the related Schedule K-1 At-Risk Limitation Allocation Worksheet.
However, this is still an important question for this investment. See the TurboTax definition for At-Risk Rules below:
At-Risk Rules
The at-risk rules prevent you from claiming losses that exceed your actual investment in a business. Your loss is considered the lesser of the following:
- The amount of the loss
- The amount you have at risk in the activity
You are at risk up to the amount of cash and the adjusted basis of other property you contribute to the activity. Funds borrowed for use in your business and for which you are personally responsible can be added to the at-risk amount..
You are not considered to be at risk if you:
- Do not have to repay borrowed amounts because you have an arrangement that protects you from loss.
- Borrowed money from a lender who has an interest in the business other than as a creditor.
You can carry disallowed losses forward to a year when you have amounts at risk. Be sure to keep records of these disallowed losses so you can claim them in later years.
