Schedule K-1 (Form 1065) At-Risk Rules

There is a section to Describe the Partnership with checkboxes.

I have passive activity losses carried over from last year.

All of my in this activity is at risk

I have at-risk losses carrying over from 2020

How do you know if you are at-risk or not?

Thanks

3546

Expert Alumni

Feb 27, 2022 5:01:19 AM

If you are personally responsible for the business and have no one who will give you your investment back if the business fails, you are considered to be "at risk". In other words, you have invested your own money in the business.

For more information, see IRS Pub 925 At-Risk Rules.

Level 1

Feb 27, 2022 5:02:59 AM

Thanks!

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Schedule K-1 (Form 1065) At-Risk Rules