At Risk Rules

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.

BREAKING DOWN '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).

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RELATED FAQS
  1. How are the profits split between a general partner and a limited partner in a real ...

  2. How many years can I wait to claim a loss on my taxes?

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