Need explaination of line 34 on form 4835. Not sure which to select.

If you have a loss, you must apply the at-risk rules and the passive activity loss rules.

 

In most cases, all of your investment is at risk, so at risk limitations don't need to be applied to your loss (34a), unless you did not actively participate in the business.

 

Here's more info on Form 4835.

 

@dw7151