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"At Risk Rule" Multi unit

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  • DavidGlennCPA
    replied
    At risk is defined under ยง465. It's the same in many ways to outside basis in a partnership except you can't include nonrecourse debt but you can include qualified nonrecourse debt. So if the partnership K-1 includes nonrecourse debt then that is included in the at-risk basis calculation.

    Qualified nonrecourse debt is debt that is secured by real estate. So in the case of a K-1 like you describe it's likely that outside basis and at-risk basis are the same.


    You have three hurdles to deducting losses from a partnership, in this order -

    Basis
    At-risk
    Passive

    The real one that will get you is the passive activity rules unless you or your spouse is a real estate professional.

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  • Sijisiji1
    started a topic "At Risk Rule" Multi unit

    "At Risk Rule" Multi unit

    I'm invested in multi unit with Real Source. Its a company like 37 Parallel properties.

    Are these type of investments considered "At Risk"? That's what my ta preparer is trying to figure out with these type of investments
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