Get IRS Instructions 6198 2020-2024

SGM Instructions for Form 6198 Draft Ok to Print Init. date 15 41 - 14-OCT-2009 The type and rule above prints on all proofs including departmental reproduction proofs. Then see the begin on page 5 and the instructions for line 18 on page 7 to determine the amounts to enter on those lines. If the activity began on or after one of the effective dates shown below and you did not complete Part III of Form 6198 for this activity for the prior tax year skip lines 11 through 14. Add lines 1 2 4 6 7 and 8. Enter here and on Form 6198 line 11. Accrual basis taxpayers also complete lines 10a through 14 below to 10a. Trade notes and accounts receivable for the activity. 10a. b. Reserve for bad debts for the activity see instructions below. 10b. 11. Net receivables for the activity. MUST be removed before printing. Department of the Treasury Internal Revenue Service Rev. November 2009 At-Risk Limitations Section references are to the Internal Revenue Code unless otherwise noted. General Instructions Purpose of Form Use Form 6198 to figure The profit loss from an at-risk activity for the current year Part I. CAUTION If the amount on line 10b is zero you may be subject to the recapture rules. See Pub. 925. Part III Detailed If you completed Part III of Form 6198 for this activity for the prior tax year skip lines 11 through 14. Then see the begin on page 5 and the instructions for line 18 on page 7 to determine the amounts to enter on those lines. Userid PAGER/SGML Page 1 of 8 Fileid DTD INSTR04 Leadpct 0 Pt. size 9. 5. d Instruct 2009 Cycle Year 6198 INST 09I6198 - 09-28-09 - EPIC. The amount at risk for the current year Part II or Part III. The deductible loss for the current year Part IV. The at-risk rules of section 465 limit the amount of the loss you can deduct to the amount at risk. For more details see Pub. 925 Passive Activity and At-Risk Rules. Who Must File Form 6198 is filed by individuals including filers of Schedules C E and F Form 1040 estates trusts and certain closely held C corporations described in section 465 a 1 B as modified by section 465 a 3. File Form 6198 if during the tax year you a partnership in which you were a partner or an S corporation in which you were a shareholder had any amounts not at risk see Amounts Not at Risk later invested in an at-risk activity defined below that incurred a loss. You must file Form 6198 if you are engaged in an activity included in 6 under At-Risk Activities see At-Risk Activities below and you have borrowed amounts described in 3 under Amounts Not at Risk see Amounts Not at Risk later. At-Risk Activities The at-risk limitation rules apply to losses from the following activities carried on as a trade or business or for the production of income. 1. Holding producing or distributing motion picture films or video tapes. 2. Farming as defined in section 464 e 1. 3. Leasing any section 1245 property as defined in section 1245 a 3. Certain equipment leasing activities by closely held C CAUTION corporations are not subject to 465 c 4 5 and 6.