By: Martin M. Shenkman, CPA, MBA, JD
The at-risk rules limit the amount of tax losses you can deduct from a business or investment to the amount you have at-risk in that investment. The amount at-risk includes the cash and the fair market value of any property you have invested in the business. The amount at-risk (your deduction limit) also includes debts for which you are personally liable (the bank can sue you personally to collect the debt).
Subscribe to our email list to receive information on consumer webcasts and blogs, for practical legal information in simple English, delivered to your inbox. For more professional driven information, please visit Shenkman Law to subscribe.