At risk rules for PTP

Forum|Forum|1 year ago
March 25, 2025
1 reply
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I have a partnership interest in a PTP for 2024. The rules for basis tracking and passive loss limitation seem clear to me. However, the extent to which this is "at risk" for the purposes of having to file form 6198 is not clear. Of course as a "stock" there is a potential for the whole interest to become worthless. However, on my K-1, there are only non-recourse liabilities listed in section K1 which makes me wonder if I should be doing form 6198 at all. Can you help clarify this situation for me?

RobertB4444

Level 15

Form 6198 just lets you decide how much of your loss from the PTP you are allowed to take this year. Your initial investment is what is at risk minus any payments that you have received from the PTP.

@wth11

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