This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.

In this episode you will learn:

• Loss deductions must sequentially clear three hurdles: Basis, At-Risk, and Passive (B-A-P).

• S corp shareholders do not receive basis for entity-level debt, unlike partners in a partnership.

• At-risk amounts generally include cash invested plus recourse debt, but exclude nonrecourse financing.

• Form 6198 is used to calculate and apply the at-risk limitations to losses.

• A key exam exception allows qualified nonrecourse financing for real estate activities to be included in the at-risk amount.

For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep