Form 6198, At-Risk Limitations
Updated: 3/16/2013
Article ID: GEN85360
Generally, losses from a trade or business operation are limited to the amount of money you can actually lose in the business.
You are subject to the at-risk rules if you are filing any of the following forms.
- Schedule C, Profit or Loss from Business. The at-risk limits apply to any business you run as a sole proprietor. For more information about Schedule C, see Schedule C, Profit or Loss from Business.
- Schedule E, Supplemental Income and Loss. The at-risk linits apply to any interest you own in rental properties, royalties, partnerships or S Corporations. For more information about Schedule E, see Schedule E, Supplemental Income and Loss.
- Schedule F, Profit or Loss From Farming. The at-risk limits apply to farming operations.
For more information regarding these at-risk limitations, see IRS Publication 925.
