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    #1

    At Risk

    Partnership with rental building only and receiving rents from their S Corp for this business building.

    Purchased with non-recourse loan. Building stands as collateral for loan.

    Partnership has loss this year. Is this at risk loss or not at risk?.
    Tags: None
    #2
    Originally posted by Earl View Post
    Partnership with rental building only and receiving rents from their S Corp for this business building.

    Purchased with non-recourse loan. Building stands as collateral for loan.

    Partnership has loss this year. Is this at risk loss or not at risk?.
    Hi Earl - you might want to check out the Self Rental Rule on pg. 7-11 of TTB.

    Comment

      #3
      Not At Risk

      Self-Rental Rule notwithstanding, I do believe the parties are still at risk.

      If there is a problem with the self-rental rule, this does not by itself constitute a problem with risk.

      Comment

        #4
        The $25,000 special loss for active participation still applies. All the self-rental rule basically does is to prohibit income from the rental activity to be used against other passive losses. So if loss, and qualified for special loss, up to $25,000 is still allowed.

        see also post in March 2009
        Last edited by Gretel; 10-12-2009, 02:52 PM. Reason: revised

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