Instructions For Form 6198 - At-Risk Limitations

finance the activity, to acquire

debt and you included an amount in 1

on page 4 for information on effective

property used in the activity, or to

above, the amounts included as

dates.

acquire your interest in the activity

repayments cannot exceed the

2. Amounts borrowed since the

and qualified nonrecourse financing

amount by which the balance of the

effective date from a person who has

(defined on page 1). Do not enter

loan at the time of repayment

an interest in the activity other than

amounts included in 2 above.

exceeds the net FMV of property you

as a creditor or who is related under

own (not used in the activity) that

4. Total net income from this

section 465(b)(3)(C) to a person

secures the debt.

activity since the effective date

(except you) having such an interest.

8. Percentage depletion deducted

(excess of all items of income

This does not apply to an interest of a

in excess of the adjusted basis of the

received or accrued over the

shareholder in the case of amounts

depletable property for the activity

allowable deductions). Do not enter

borrowed by a corporation from the

since the effective date. Use the

any amount less than zero. Do not

shareholder. Enter these amounts

Line 16 Worksheet below to figure

include the current year income or

only if they were included on line 16

this amount. Be sure to include the

gains.

and not included under 1 above. This

amount for the current year.

applies only to activities described in

If you are not an S corporation

9. If you are an S corporation

1 through 5 under At-Risk Activities

shareholder, enter the total net

shareholder, enter the loans you

on page 1. See the instructions at the

income from the activity since the

made to your S corporation since the

beginning of Part III on page 4 for

effective date, taking into account

effective date. Do not include notes

information on effective dates.

only those years the activity had net

that you have given to the activity that

income. For years since the effective

3. Cash and the adjusted basis of

are still outstanding.

date that the activity had a net loss,

other property withdrawn or

see the instructions for line 18,

distributed since the effective date.

Line 18

item 5, on page 8.

Adjusted basis is the basis that would

be used to figure the loss if the

If you are an S corporation

Decreases

property was sold by the activity at

shareholder, enter your total net

the time you withdrew it or it was

If you completed Part III of Form 6198

income from the activity for profit

for 2002, check box b and enter on

distributed to you.

years since the effective date. Income

this line any decreases described in 1

from the activity includes gain

If you are an S corporation

through 8 below that occurred since

recognized under section 357(c) on

shareholder and the property is

the end of your 2002 tax year.

contributions of property to the

subject to debt that would be included

activity. Include all distributions you

on line 14 (or on this line except for

If you completed Part III of the

received from the activity as well as

the fact that there are liens or

2002 form, “since effective date”

your share of the activity’s taxable

encumbrances on the property in the

means since the end of your 2002 tax

income.

activity), reduce the basis of the

year.

distributed property by the amount of

5. Gain recognized on the transfer

the debt.

or disposition of all or part of the

Enter your share of amounts such

activity or of your interest in the

as the following.

If you are not an S corporation

activity since the effective date.

shareholder, reduce the adjusted

1. Cash, property, or borrowed

6. Amounts you included in

basis of property withdrawn by the

amounts protected against loss by a

amount, at the time of withdrawal, of

income since the effective date

guarantee, stop-loss agreement, or

any nonrecourse liability to which the

because your amount at risk was less

other similar arrangement entered

than zero.

property is subject.

into since the effective date. Do not

7. All money from outside the

include items covered by casualty

Do not include any money from

activity used since the effective date

insurance or insurance against tort

the activity used to repay loans

to repay loans included on lines 14

liability. Enter this amount only if it

described in the instructions for

and 18. If, however, you used your

was included on line 16. See the

line 14 that begin on page 5. Include

own assets to repay a nonrecourse

instructions at the beginning of Part III

amounts that were withdrawn and

Line 16 Worksheet (Item 8)—Figure Percentage Depletion Deducted in Excess of

the Adjusted Basis of Depletable Property (keep for your records)

(c)

(d)

(a)

(b)

Adjusted basis of depletable property

Excess percentage depletion

Year

Percentage depletion deduction

before any depletion deduction for

(column (b) minus column (c))

the year

but not less than zero

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

-7-

Instructions For Form 6198 - At-Risk Limitations - 2003 Page 7

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