At risk rule

At risk rule,

Definition of At risk rule:

  1. Provision in some tax laws that limits the deductions allowed for losses incurred by investors in limited-partnerships (commonly formed for real-estate development, oil or gas exploration, and movie production). It allows deduction on losses incurred only on the debt for which the claimant is personally responsible, and on the cash invested by him or her.

Meaning of At risk rule & At risk rule Definition