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Screen 6198 - At-Risk Limitations (1041)

Amount At-Risk

Enter the beginning at-risk code to determine which calculation the application uses in the determination of the at-risk amount.
Amounts in the
Beginning at-risk amount
 field transfer to the appropriate lines in Part II or Part III of Form 6198 based on the entry in the
Beginning at-risk code
 field. The application doesn't allow amounts less than zero in this field. If the AMT fields are blank, the application assumes these amounts are zero.
Enter the increase and decrease in at-risk at effective date. The application uses these amounts in the Part III detailed at-risk calculation only.
Enter the increase and decrease in at-risk since the effective date for a detailed calculation, or enter the increase or decrease since 12/31/21 for the simplified calculation. The application includes amounts on the K1-5 screen in the
Cash and marketable securities distributions
 and
Property distribution
 fields as decreases in at-risk basis.
Enter the portion, if different than the total amount, of guaranteed payments reported on Schedule K1 that qualifies as at-risk income.
Use this field to enter previously deducted at-risk losses subject to recapture when the amount of the at-risk is less than zero. The application automatically proformas the losses deducted in the prior year to this field. The application determines the activities' at-risk basis by subtracting the amount on Form 6198, line 10a or 19a, whichever is used, from the current-year profit on Form 6198, line 5.
When the at-risk basis is negative, the amount that is negative is compared to the difference of the
Total losses deducted in prior years beginning after 1978
 field less the amount in the
Amounts previously included in gross income
 field. The lesser of the difference or negative at-risk basis is reported on Form 1041, line 8 as Negative At-Risk Recapture.
Use this field to enter amounts previously included in gross income due to negative at-risk. The application automatically proformas the amounts previously included in prior years.
Exclude recourse partnership liabilities…
Enter
X
 to exclude the increase or decrease of at-risk basis due to recourse partnership liabilities. The application automatically calculates the increase or decrease of at-risk basis by subtracting the
Prior year share of liabilities: recourse
 field from the
Current year share of liabilities: recourse
 field in Screen PBasis1.

This article applies to:

  • PRODUCT: UltraTax CS
  • Return type: 1041 Fiduciary
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