Which of the following decreases a taxpayer's at-risk amount?
A)Cash distributions.
B)Income items.
C)Cash contributions.
D)Increases in liabilities.

Name: Which of the following decreases a taxpayer's at-risk amount? A)Cash distributions. B)Income items. C)Cash contributions. D)Increases in liabilities.
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Question

Quizplus · Accepted Answer

Cash distributions decrease a taxpayer's at-risk amount because they represent a return of investment, reducing the amount the taxpayer has at risk in the activity.

Which of the Following Decreases a Taxpayer's At-Risk Amount