In determining the at-risk amount for a partner, positive amounts of partnership income allocations for the year are added to the opening balance of the partner's adjusted cost base.

Question

Quizplus · Accepted Answer

The at-risk amount for a partner is determined by adding the positive partnership income allocations for the year to the opening balance of the partner's adjusted cost base. This ensures that the partner's at-risk amount reflects the actual amount of their investment in the partnership.

In Determining the At-Risk Amount for a Partner, Positive Amounts