Form 6198

Form 6198

A form one files with the IRS to claim profit or loss in the current year for capital put at risk in a previous year. A loss listed on Form 6198 may be tax deductible up to the amount of the capital put at risk originally.
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Taxpayers with losses from activities with amounts not at-risk are required by the IRS to complete and file with their tax return Form 6198, At Risk Limitations.
Although there is no formal ordering rule for deducting losses subject to the at-risk rules, the instructions to Form 6198 require a pro rata share of each type of loss limited by the at-risk rules be carried forward.
Ideas for tax topics are solicited from the staff, and the gatherings may include a more in-depth discussion of, for example, dependent rules and education credits, or Form 6198 and at-risk limitations.