Which of the following decreases a taxpayer's at-risk amount?
A)Cash distributions.
B)Increases in liabilities.
C)Income items.
D)Cash contributions.

Name: Which of the following decreases a taxpayer's at-risk amount? A)Cash distributions. B)Increases in liabilities. C)Income items. D)Cash contributions.
Brand: Quizplus
Rating: 4.7 (47 reviews)

Question

Quizplus · Accepted Answer

Cash distributions decrease a taxpayer's at-risk amount because they reduce the actual economic stake or investment the taxpayer has in the activity.

Which of the Following Decreases a Taxpayer's At-Risk Amount