Only amounts included on line 6 can be entered on line 9.Ĭash, property, or borrowed amounts protected against loss by a guarantee, stop-loss agreement, or other similar arrangement. Nonrecourse loans (including recourse loans changed to nonrecourse loans) other than qualified nonrecourse financing (defined earlier under Qualified Nonrecourse Financing) used to finance the activity, to acquire property used in the activity, or to acquire your interest in the activity. ![]() Percentage depletion for this year deducted in excess of the adjusted basis of depletable property for the activity. Do not enter amounts included in (2) under Increases for the Tax Year or on line 6. Loans used to finance the activity, to acquire property used in the activity, or to acquire your interest in the activity for which you are personally liable, and qualified nonrecourse financing (defined earlier under Qualified Nonrecourse Financing). However, if you used your own assets to repay a nonrecourse debt and you included an amount in (1) above, the amount included as repayments cannot be more than the amount by which the balance of the loan at the time of repayment exceeds the net FMV of property you own (not used in the activity) that secures the debt. 925 for definitions.Ĭash and the adjusted basis of other property (determined at the time of the contribution) contributed to the activity during the tax year. However, (a) does not apply to amounts borrowed by a corporation from a person whose only interest in the activity is as a shareholder of the corporation. Generally, the net FMV is determined when the property is pledged as security for the loan.ĭo not enter the net FMV if (a) the nonrecourse loan was from a person who has an interest in the activity other than as a creditor or who is related under section 465(b)(3)(C) to a person (except you) having such an interest, and (b) the activity is described in (1) through (5) (or (6) for amounts borrowed after May 3, 2004) under At-Risk Activities, earlier. Include the nonrecourse loans on line 9 (if included on line 6). Net fair market value (FMV) of property you own (not used in the activity) that secures nonrecourse loans used to finance the activity, to acquire property used in the activity, or to acquire your interest in the activity. If you carry a loss from Form 4684 to Schedule A (Form 1040 or 1040-SR), enter on line 2c either the loss from Schedule A (Form 1040 or 1040-SR) or the loss from Form 4684. For example, if you file Form 4684, Casualties and Thefts, and carry amounts from that form to Form 4797, Sales of Business Property, either (a) enter the amounts attributable to the activity from Form 4684 on line 2c and enter "Form 4684" on the dotted line next to the entry space, or (b) enter the amount attributable to the activity carried from Form 4684 to Form 4797 on line 2b. Enter the form number or schedule letter to the left of the entry space for line 2c. Lines 2a and 2b that are included on line 2c. ![]() If more than one item is included on a line, attach a statement describing each item Enter gains and losses without regard to the at-risk limitations, the limitation on capital losses, or the passive activity loss limitations. 925 for definitions.Īny cash or property contributed to the activity or to your interest in the activity that is:Ĭombine long- and short-term capital gains and losses and ordinary gains and losses from the sale or other disposition of assets used in the activity or of your interest in the activity. However, this does not apply to (a) amounts borrowed by a corporation from a person whose only interest in the activity is as a shareholder of the corporation, or (b) amounts borrowed after May 3, 2004, and secured by real property used in the activity of holding real property (other than mineral property) that, if nonrecourse, would be qualified nonrecourse financing. See Qualified Nonrecourse Financing, later.Ĭash, property, or borrowed amounts used in the activity that are protected against loss by a guarantee, stop-loss agreement, or other similar arrangement (excluding casualty insurance and insurance against tort liability).Īmounts borrowed for use in the activity from a person who has an interest in the activity other than as a creditor or who is related under section 465(b)(3)(C) to a person (except you) having such an interest. However, you are considered at risk for qualified nonrecourse financing secured by real property used in the activity of holding real property (other than mineral property). Nonrecourse loans used to finance the activity, to acquire property used in the activity, or to acquire your interest in the activity (unless the nonrecourse loan is secured by your own property that is not used in the activity).
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