The main difference between a partner's tax basis and at-risk amount is that qualified nonrecourse financing is not included in the at-risk basis amount.

Question

Quizplus · Accepted Answer

Qualified nonrecourse financing is included in the at-risk amount but not in the partner's tax basis. The at-risk rules specifically allow for the inclusion of qualified nonrecourse financing, which is financing for which no one is personally liable for repayment and is secured by real property used in the activity.

The Main Difference Between a Partner's Tax Basis and At-Risk