A taxpayer's at-risk amount in an activity is increased by:

A taxpayer's at-risk amount in an activity is increased by:


A) a reduction in the amount of debt related to the activity that the taxpayer is responsible for paying.

B) cash contributions to the activity.

C) cash distributions from the activity.

D) a reduction in the amount of debt related to the activity that the taxpayer is responsible for paying and cash contributions to the activity.

E) a reduction in the amount of debt related to the activity that the taxpayer is responsible for paying and cash distributions from the activity.


Answer: B


Learn More :