Form 6198 - is used to calculate:
- the current year profit or loss from an at-risk activity,
- the amount at risk, and
- the deductible loss for the current year.
File Form 6198 if during the tax year you, a partnership in which you were a partner, or an S corporation in which you were a shareholder had non-recourse loans, stop-loss agreements, or other types of protection against losses for investments in an at-risk activity carried on as a trade or business or for the production of income in which you incurred a loss.