Hello!
I’m trying to fill in US Tax Schedule E. And I have a question about at-risk rules.
I’m leasing my house back in Canada and have rental loss from it. But in order to fill in line 22 of Schedule E I have to determine if I’m at risk or not. And I confused as I cannot understand what is this at-risk rules are.
May be you can give me some example to clarify when I can consider my losses to satisfy these at-risk rules, and when I cannot.
All the advices will be appreciated.
Rental loss and at-risk rules
Moderator: Mark T Serbinski CA CPA
Rather than getting bogged down with arcane at-risk rules, I would simply suggest that you look up "rental loss" on the irs website.
You will see that as long as you, not a corporation, own the property, do not have some weird mortgage that you can't foreclosed on, and the loss is less than $25,000, you will have no problem.
You may have to fill an extra form 8582, or not.
You will see that as long as you, not a corporation, own the property, do not have some weird mortgage that you can't foreclosed on, and the loss is less than $25,000, you will have no problem.
You may have to fill an extra form 8582, or not.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
[quote]You will see that as long as you, not a corporation, own the property, do not have some weird mortgage that you can't foreclosed on[/quote]
Hi Nelsona,
Do you mean that I can be considered at risk for qualified nonrecourse financing secured by real property used in the activity of holding real property? Thus I do not need to fill in Form 6198 is that right?
Thank you
Hi Nelsona,
Do you mean that I can be considered at risk for qualified nonrecourse financing secured by real property used in the activity of holding real property? Thus I do not need to fill in Form 6198 is that right?
Thank you