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Publication 925 - Introductory Material

Future Developments

For the latest developments related to Publication 925, such as legislation enacted after it was published, go to


Regrouping due to Net Investment Income Tax. You may be able to regroup your activities if you’re subject to the Net Investment Income Tax. See Regrouping Due to Net Investment Income Tax under Grouping Your Activities , later, for more information.

At-risk amounts. The following rules apply to amounts borrowed after May 3, 2004.

  • You must file Form 6198, At-Risk Limitations, if you’re engaged in an activity included in (6) under Activities Covered by the At-Risk Rules and you have borrowed certain amounts described in Certain borrowed amounts excluded under At-Risk Amounts in this publication.

  • You may be considered at risk for certain amounts described in Certain borrowed amounts excluded under At-Risk Amounts secured by real property used in the activity of holding real property (other than mineral property) that, if nonrecourse, would be qualified nonrecourse financing.

Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing & Exploited Children® (NCMEC). Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.


This publication discusses two sets of rules that may limit the amount of your deductible loss from a trade, business, rental, or other income-producing activity. The first part of the publication discusses the passive activity rules. The second part discusses the at-risk rules. However, when you figure your allowable losses from any activity, you must apply the at-risk rules before the passive activity rules.

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Ordering forms and publications.   Visit to download forms and publications. Otherwise, you can go to to order current and prior-year forms and instructions. Your order should arrive within 10 business days.

Tax questions.   If you have a tax question not answered by this publication, check and How To Get Tax Help at the end of this publication.

Useful Items - You may want to see:


  • 527 Residential Rental Property (Including Rental of Vacation Homes)

  • 541 Partnerships

Form (and Instructions)

  • 4952 Investment Interest Expense Deduction

  • 6198 At-Risk Limitations

  • 8582 Passive Activity Loss Limitations

  • 8582-CR Passive Activity Credit Limitations

  • 8810 Corporate Passive Activity Loss and Credit Limitations

  • 8949 Sales and Other Dispositions of Capital Assets

See How To Get Tax Help near the end of this publication for information about getting these publications and forms.

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