A taxpayer's at-risk amount in an activity is increased by:
A) a reduction in the amount of debt related to the activity that the taxpayer is responsible for paying
B) cash contributions to the activity
C) cash distributions from the activity
D) A and B
E) A and C

Question

Quizplus · Accepted Answer

Cash contributions to the activity increase the taxpayer's at-risk amount because they represent additional investment in the activity.

A Taxpayer's At-Risk Amount in an Activity Is Increased By