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Ask Shan-Nel Simmons Your Own Question
Shan-Nel Simmons
Shan-Nel Simmons, Enrolled Agent
Category: Tax
Satisfied Customers: 23
Experience:  Tax Professional and Owner at Nel's Tax Help,LLC
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I am filing 3 K-1's via turbo tax and trying to answer the

Customer Question

I am filing 3 K-1's via turbo tax and trying to answer the question : "All of my investment in this activity is at risk. Yes or no?". The answer seems to have a big impact on my return. Would love to get insights here.
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: What information would be helpful?
JA: Is there anything else important you think the Accountant should know?
Customer: All 3 are LLC's. I'm a GP for 2 and and LP for one
Submitted: 2 months ago.
Category: Tax
Expert:  Shan-Nel Simmons replied 2 months ago.

Starting at page 12 of publication 925 explains about at-risk limitations for how much loss each partner will be allowed to deduct on their respective K-1s. Here is publication 925: https://www.irs.gov/pub/irs-pdf/p925.pdf

You will need Form 6198 to help you determine the amount of the loss limitation if any. Here is Form 6198: https://www.irs.gov/pub/irs-pdf/f6198.pdf

Before you consider at-risk limitations, you have to consider passive activity limitations first. Publication 925 talks about passive activity limitations as well.

But this publication and that form will help you make your determinations.

Glad to help! Please leave a five star rating and have a great day!

Expert:  Shan-Nel Simmons replied 2 months ago.

Glad to help. Please leave a five star rating.