What limits a taxpayer's deduction loss to the amount that the taxpayer actually has at risk of loss and affects individuals, estates and trust, partners, shareholders in S corporations, and most C corporations equally?

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At-risk rules limit a taxpayer's deduction loss to the amount that the taxpayer actually has at risk of loss and affects individuals, estates and trust, partners, shareholders in S corporations, and most C corporations. The amount at risk is equal to the sum of 1) the amount of cash and adjusted basis of other property contributed to the activity by the taxpayer 2) Amounts borrowed for use in the activity for which the taxpayer is personally liable 3) Amounts borrowed for use in the activity that are secured by property of the taxpayer that is not used in the activity to the extent of fair market value of the property 4)a taxpayer's share of qualified nonrecourse financing that is secured by the real property used in the activity, Nonrecourse financing generally means loans from banks, savings and loans, credit unions, and so on, Nonrecourse financing does not include borrowing from any persons who has an interest in the activity other than a creditor, or from a related person.

What Limits a Taxpayer's Deduction Loss to the Amount That