At risk rules

At risk rules are the set of tax regulations governing the amount of tax losses that an investor can claim. The general concept is that only funds placed at risk by an investor and debt for which the individual is personally liable can be claimed as tax losses. For example, an investment in real estate generates a loss of $100,000. Since the property owner only invested $25,000 of cash and personal-liability debt in the property, the maximum tax loss that can be claimed is $25,000.