Instructions For Form 6198 - At-Risk Limitations (Page 7 of 8) in pdf

9. If you are an S corporation

real property (other than mineral

take them into account as income from

shareholder, enter the loans you made

the activity on line 16 unless the gain is

property) that, if nonrecourse, would be

to your S corporation since the effective

recognized in the current year.

qualified nonrecourse financing. Enter

date. Do not include notes that you

these amounts only if they were

4. Recourse loans (and qualified

have given to the activity that are still

nonrecourse financing) changed to

included on line 16 and not included

outstanding.

nonrecourse loans since the effective

under (1) above. This applies to

date.

activities described in (1) through (5) (or

5. Total losses from this activity

(6) for amounts borrowed after May 3,

Line 18

deducted since the effective date. Take

2004) under At-Risk Activities on page

into account only those years in which

Decreases

1. See the instructions at the beginning

you had a net loss. Do not include

of Part III on page 4 for information on

If you completed Part III of Form 6198

current year losses or deductions. Also,

effective dates.

for your prior tax year, check box b and

do not include losses or deductions you

enter on this line any decreases

3. Cash and the adjusted basis of

could not deduct because of the at-risk

described in (1) through (8) below that

other property withdrawn or distributed

rules.

occurred since the end of your prior tax

since the effective date. Adjusted basis

year.

is the basis that would be used to figure

Your prior tax year line 21

the loss if the property was sold by the

deductible loss reduces your

If you completed Part III of your prior

activity at the time you withdrew it or it

at-risk investment as of the

year tax form, “since effective date”

CAUTION

was distributed to you.

beginning of your current tax year.

means since the end of your prior tax

year.

If you are an S corporation

6. Nonrecourse liabilities of property

shareholder and the property is subject

you contributed to the activity since the

Enter your share of amounts such as

to debt that would be included on line

effective date.

the following.

14 (or on this line except for the fact

7. Any other at-risk amounts

1. Cash, property, or borrowed

that there are liens or encumbrances

included on line 15 that changed to

amounts protected against loss by a

on the property in the activity), reduce

amounts that are not at risk since the

guarantee, stop-loss agreement, or

effective date.

the basis of the distributed property by

other similar arrangement entered into

the amount of the debt.

8. If you are an S corporation

since the effective date. Do not include

shareholder, do not include any loans

If you are not an S corporation

items covered by casualty insurance or

that were assumed by the corporation

shareholder, reduce the adjusted basis

insurance against tort liability. Enter this

or that were liens or encumbrances on

of property withdrawn by the amount, at

amount only if it was included on line

property you contributed to the

16. See the instructions at the

the time of withdrawal, of any

corporation since the effective date if

beginning of Part III on page 4 for

nonrecourse liability to which the

the corporation took the property

information on effective dates.

property is subject.

subject to the debt.

2. Amounts borrowed since the

Do not include any money from the

effective date from a person who has

activity used to repay loans described

an interest in the activity other than as

For loans, enter the amount of

in the instructions for line 14 on page 5.

a creditor or who is related under

TIP

the loan you incurred, not the

Include amounts that were withdrawn

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

current balance of the loan.

and recontributed. Recontributed

(except you) having such an interest.

amounts also must be included on line

However, this does not apply to (a)

Line 19b

16.

amounts borrowed by a corporation

Partners and S corporation

from a person whose only interest in

Amount At Risk

shareholders who recognize gain on

the activity is as a shareholder of the

distributions from the partnership or S

If the amount on line 19b is zero, you

corporation, or (b) amounts borrowed

corporation must include the

may be subject to the recapture rules.

after May 3, 2004, and secured by real

See Pub. 925.

property used in the activity of holding

distributions on line 18. They also must

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 Page 7

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