topic Re: K1 pass through in Get your taxes done using TurboTax

K1 pass through

watergirl2 — Mon, 09 Mar 2026 05:19:47 GMT

Hello

When adding my K1s to my personal tax returns I am seeing this option

All of my investment in this activity is at risk.

Selecting it makes a significant difference in the refund. Why?

Our business is 100% self-financed so all the capital and expenses are paid by us.

Are we at risk?

Thank you

Re: K1 pass through

CB105 — Tue, 22 Feb 2022 00:36:03 GMT

I believe that it means that if you are personally liable for any losses, your investment is at risk.

Re: K1 pass through

Mike9241 — Tue, 22 Feb 2022 01:07:41 GMT

assuming it is not a publicly traded partnership, then the loss it is showing would only be deductible if you are at risk. at risk should have no effect if there is net income. generally, if you are not 100% at risk the IRS wants form 6198 where the at-risk amount and allowable loss are computed