The at-risk amount is increased each tax year by:
A) Income items.
B) The basis of assets contributed.
C) The share of debt the investor is liable to repay.
D)All of these.

Question

Quizplus · Accepted Answer

The at-risk amount is increased each tax year by all of these factors - income items, the basis of assets contributed, and the share of debt the investor is liable to repay. Income items include any income or gain from the investment, while the basis of assets refers to the cost of the property or assets contributed to the investment. The share of debt the investor is liable to repay includes any debt that the investor is personally responsible for in relation to the investment. All of these factors affect the at-risk amount and can impact the investor's tax liability.

The At-Risk Amount Is Increased Each Tax Year By