In regards to check-box #2 "I have passive activity losses carried over from last year". Is that only for rental property, or natural resource royalties? And for #3, what does, "All of my investment in this activity is at-risk" mean?
1. Unreimbursed Partnership Expenses (UPE) is written into the partnership agreement or it is not. Are unreimbursed expenses are part of the corporation or not?
2. Passive activity losses can't be carried over in a new business
3. You invested the money and would lose money if the business went under means at risk.
4. No carryover for new business.
Passive activity losses arise from many things. See Topic No. 425 Passive Activities – Losses and Credits
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