Yes, you are 'at risk'. If you could lose your money and/or
property that you put into your business or rental, you are considered 'at risk'.
You are 'at risk'
in any activity for:
1.
The money you
contribute to the activity,
and
2.
Amounts
you borrow for use in the
activity if:
- You are personally liable for repayment, or
- You pledge property
(other than property used in the activity) as security for the loan.
Amounts not at
risk include nonrecourse financing, or guarantees or
agreements that limit the losses of the taxpayer.
