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Screen 6198 - At-Risk Limitations (1120)

Overview

The application automatically combines information entered throughout the return and determines the allowed losses for an activity.
Information you enter in the
Detail Schedule
 statement dialog in Screen D is connected to an activity using the form / schedule and unit number business activity codes. When these codes agree with Screen 6198, the application invokes the at-risk calculations, potentially limiting the losses. If the losses from the activity are limited due to at-risk rules, the At-Risk Limitation Worksheet details the loss allowed and disallowed. Note that the application may further adjust the passive activity calculation.

General Information

Use this field to enter the limit to which the prior losses are recognized as income due to reductions in the amount at-risk to less than zero for this activity. If you leave this field blank, the application assumes that there is no limit to the recapture amount. You may enter
0
 (zero) if there is no amount subject to recapture. Recapture amounts are reported on Form 1120, line 10, Other income.

Amount At-Risk

Use this section to complete Form 6198, Part II or Part III. In future years, this information proformas automatically.
Enter the beginning at-risk code to determine which calculation UltraTax CS/1120 uses in determining 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.
Enter the increase and decrease in at-risk at effective date. UltraTax CS/1120 uses these amounts in the Part III detailed at-risk calculation when code 2 is entered in the
Beginning at-risk code
 field.
Enter the increase and decrease in at-risk since the effective date for a detailed calculation when code 2 is entered in the
Beginning at-risk code
 field; or enter the increase or decrease since the end of your prior tax year for the simplified calculation or for the detailed calculation when code 3 is entered in the
Beginning at-risk code
 field.

Carryover

Enter the operating loss disallowed in a prior year due to at-risk limitations. This amount appears as another expense item on Schedule F and Form 4835. This amount is included with current-year operating information for Schedule K-1 activities and UltraTax CS/1120 uses this amount in determining the amount reported on Form 1120, Page 1.
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