Instructions For Form 6198 - At-Risk Limitations Page 8
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8on line 21, subject to any other
must be retained as long as their
Part IV—Deductible
limitations. Follow the instructions for
contents may become material in the
Loss
your tax return to determine where to
administration of any Internal Revenue
report the amount on your return.
law. Generally, tax returns and return
information are confidential, as required
If the amount on line 21 is made up
Line 21
by section 6103.
of more than one deduction or loss item
in Part I (such as a Schedule C loss
The time needed to complete and
Deductible Loss
and a Schedule D loss), a portion of
file this form will vary depending on
If the loss on line 5 is equal to or less
each such deduction or loss item is
individual circumstances. The
than the amount on line 20, report the
allowed (subject to other limitations) for
estimated burden for individual
items in Part I in full on your return,
the year. Determine this portion by
taxpayers filing this form is approved
subject to any other limitations such as
multiplying the loss on line 21 by a
under OMB control number 1545-0074
the passive activity and capital loss
fraction. Figure the fraction by dividing
and is included in the estimates shown
limitations. Follow the instructions for
each item of deduction or loss from the
in the instructions for their individual
your tax return.
activity by the total loss from the activity
income tax return. The estimated
If the loss on line 5 is more than the
on line 5. The remaining portion of each
burden for all other taxpayers who file
amount on line 20, you must limit your
deduction or loss item from the activity
this form is shown below.
deductible loss to the amount on
is disallowed and must be carried over
line 20, subject to any other limitations.
to next year.
Recordkeeping . . . . . . . . 1 hr., 12 min.
Examples. (a) If line 5 is a loss of
Learning about the law or
Paperwork Reduction Act Notice.
$400 and line 20 is $1,000, enter
the form . . . . . . . . . . . . .
1 hr.
We ask for the information on this form
($400) on line 21. (b) If line 5 is a loss
Preparing the form . . . . . 1 hr., 25 min.
to carry out the Internal Revenue laws
of $1,600 and line 20 is $1,200, enter
Copying, assembling,
of the United States. You are required
($1,200) on line 21. (c) If line 5 is a loss
and sending the form to
to give us the information. We need it to
of $800 and line 20 is zero, enter -0- on
the IRS . . . . . . . . . . . . . .
20 min.
ensure that you are complying with
line 21.
these laws and to allow us to figure and
If you have comments concerning
When comparing lines 5 and 20,
collect the right amount of tax.
the accuracy of these time estimates or
TIP
treat the loss on line 5 as a
suggestions for making this form
You are not required to provide the
positive number only for
simpler, we would be happy to hear
information requested on a form that is
purposes of determining the amount to
from you. See the instructions for the
subject to the Paperwork Reduction Act
enter on line 21.
tax return with which this form is filed.
unless the form displays a valid OMB
If the amount on line 21 is made up
control number. Books or records
of only one deduction or loss item,
relating to a form or its instructions
report on your return the amount shown
-8-
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