At Risk Rules

AAA

DEFINITION of 'At Risk Rules'

Tax laws limiting the amount of losses an investor (usually a limited partner) can claim. Only the amount actually at risk can be deducted.

INVESTOPEDIA EXPLAINS 'At Risk Rules'

For example, if you have $20,000 at risk in an investment which generates $5000 in tax losses a year, the losses may only be used for 4 years (or until the investor puts more money in).

RELATED TERMS
  1. Alternative Minimum Tax - AMT

    A tax calculation that adds certain tax preference items back ...
  2. Income Tax

    A tax that governments impose on financial income generated by ...
  3. Risk

    The chance that an investment's actual return will be different ...
  4. Working Tax Credit (WTC)

    A tax credit offered to low-income individuals working in the ...
  5. Proof of Charitable Contributions ...

    Substantiation required by the Internal Revenue Service for a ...
  6. Corporate Inversion

    Re-incorporating a company overseas in order to reduce the tax ...
Related Articles
  1. The 10 Commandments Of Investing
    Investing Basics

    The 10 Commandments Of Investing

  2. One Portfolio For Asset Allocation
    Investing Basics

    One Portfolio For Asset Allocation

  3. 10 Steps To Building A Winning Trading ...
    Active Trading

    10 Steps To Building A Winning Trading ...

  4. Financial Wisdom From Three Wise Men
    Options & Futures

    Financial Wisdom From Three Wise Men

comments powered by Disqus
Hot Definitions
  1. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  2. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  3. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  4. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  5. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  6. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
Trading Center