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

The taxpayer's at-risk amount is increased by both recourse liabilities and qualified nonrecourse liabilities, as they are both considered to be debts for which the taxpayer is personally liable. However, nonrecourse liabilities are not considered to increase the taxpayer's at-risk amount, as they are only secured by the property in question and the taxpayer is not personally liable for paying them.

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