Which of the following increases the taxpayer's at-risk amount?
A) A taxpayer's share of recourse liabilities.
B) A taxpayer's share of qualified nonrecourse liabilities.
C) A taxpayer's share of nonrecourse liabilities.
D) Both A taxpayer's share of recourse liabilities and A taxpayer's share of qualified nonrecourse liabilities.

Question

Quizplus · Accepted Answer

A taxpayer's share of recourse liabilities and qualified nonrecourse liabilities increase the at-risk amount because the taxpayer is personally liable for those debts. Nonrecourse liabilities do not increase the at-risk amount because the taxpayer is not personally liable for those debts.

Which of the Following Increases the Taxpayer's At-Risk Amount