Redeeming the Tax Credit
Question:
Do at-risk rules limit the amount of the tax credit you can redeem?
Yes No
Explanation:
At-risk rules specify that the amount of credit the taxpayer can claim related to an activity, including the holding of real estate, is equal to the amount the taxpayer has "at-risk" in the activity.
Use the links below to determine the amount of credits you are allowed to redeem under the at-risk rules. Consult your accountant if you are having difficulty.
Resources:
- Passive Activity and At-Risk Rules
IRS Publication 925 (pdf, 234 kb) - At-Risk Limitations
IRS Form 6198 (pdf, 19 kb) - Instructions for At-Risk Limitations Form
IRS Instruction 6198 (pdf, 62 kb)