Amount at Risk

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Amount at Risk

1. The difference between the amount an insurer must pay if an insured event occurs and the reserves from which it makes payments.

2. The different between the amount of a loan and the amount the borrower still owes the lender, including interest.

3. The difference between the cash value of a life insurance policy and the amount the insurer must pay if the policyholder dies.
References in periodicals archive ?
According to the Senate Finance Committee Report, TRA '86, amounts at risk are reduced even if deductions that would be allowed under the at risk rule are suspended under the passive loss rule.
Generally, a taxpayer's deductions from an activity are limited to amounts at risk. A taxpayer is considered at risk for an activity for the amount of money and adjusted basis of other property contributed to the activity and for amounts borrowed to use in the activity to the extent that he is personally liable for the repayment of such amounts or has pledged property as security for such borrowed amount (Sec.
First, the court seems to have correctly sensed that partners (and S shareholders) can obtain the benefit of tax deductions in excess of their capital contributions and amounts at risk if such a basis increase is allowed.