Form 6198, At-Risk Limitations
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.
Form 6198 and TurboTax
When you use TurboTax to prepare your taxes, we’ll ask you questions about any money you have invested in your business that you are not at risk of losing, figure out the amount of any applicable at risk limits, and fill in all the right forms for you, including Form 6198 if applicable.