I rent out my personal property. and notice there is saying " Subtract line 20 from line 3 (rents) and/or result is a (loss), see instructions to find out if you must file Form 6198".
what does "at-risk" mean? it means I am in the risk?
if the loss is actually every year because of the interest of mortgage and depreciation, Does IRS will think I am risky?
If the number less than 0 in line 21, Do I must fill form 6198? What does it mean? any affects happen for this "at-risk"?
Read through the TurboTax article at the link below.
"At Risk" means that you have more money invested in the property that you rent than you have lossed. For instance, if the property cost you $10,000 and you have deducted losses of $5,000 on it, you would be at risk for $5,000. You cannot deduct losses anymore once your at risk amount is zero. This is a cumulative thing, so you can have losses in several years and still be at risk.
You would only complete form 6198 if you were not at risk in your business, in other words if your amount at risk was reduced to zero.