Explore commonly used personal finance terms.
The at-risk amount is the portion of an investment that an investor could potentially lose, excluding protected or guaranteed amounts. In real estate or partnerships, it represents the equity invested and any personally guaranteed debt. At-risk rules limit tax deductions to the amount actually at risk, preventing investors from claiming losses on funds they did not personally finance. Knowing the at-risk amount helps investors understand their exposure and guides decisions on risk management and tax planning.
