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is this a passive activity? the reason I ask is that once you have basis, losses can be suspended if they are passive
Check the link in the first response, @Anonymous
Thanks for your reply. This specific activity I'm running into this issue on is a non-passive activity. The at-risk rules would first potentially limit the losses (on Form 6198) before applying the passive activity rules (on Form 8582). However, in this case none of the income/losses from this activity will be reported on Form 8582 since it's non-passive.
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