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Taxstra • Planning worksheet • 2026-09-07

Qualified Nonrecourse Financing: Basis, At-Risk Rules and Rental Losses

Use this worksheet alongside the guide. The figures and schedules are educational illustrations, not individualized tax advice or a recommendation for your circumstances.

Work through your records

Read the explanation in the guide before filling in the schedule. Keep the illustrated values separate from your actual records. For each row, identify the supporting document, applicable period, unresolved assumption, and person responsible. Do not treat example percentages or classifications as established facts for your situation.

Debt description Question to resolve Why it matters for the tax review Your records / questions
Recourse Who is personally exposed to repayment, and under what terms? Personal liability may support an at-risk amount, subject to other restrictions
Nonrecourse Is repayment limited to the collateral or activity interest? A basis increase does not necessarily produce an at-risk increase
Qualified nonrecourse financing Does the real-property financing meet the statutory and regulatory conditions? The qualifying amount can count at risk under the real-property exception
Limitation step Debt qualifies Debt does not qualify Your records / questions
Assumed outside basis before the loss $400,000 $400,000
Amount at risk before the loss $400,000 $100,000
Loss presented for review $150,000 $150,000
Loss passing basis and at-risk limits $150,000 $100,000
Suspended by the at-risk limit in this example $0 $50,000
Current deduction after passive and other limits Not determined here Not determined here

Resolve the decision

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