U.S. · Tax forms
Form 6198 line 7, increases for the tax year.
What raises your amount at risk during the year, and what to leave out.
Line 7 (“Increases for the tax year”) is in Part II, the simplified computation of amount at risk. Enter changes during the year that increase your amount at risk, such as cash or property contributed and loans you are personally liable for. Do not include the current year income or gains already on lines 1 through 3.
Look up an increase
Result
Increases listed in the instructions
| Item | Meaning | What the IRS says |
|---|---|---|
| Contributions | Increase | Cash and the adjusted basis of other property (determined at the time of the contribution) contributed to the activity during the tax year. |
| Personal liability loans | Increase | Loans used to finance the activity, to acquire property used in the activity, or to acquire your interest in the activity for which you are personally liable, and qualified nonrecourse financing. |
| Pledged outside property | Increase | Net fair market value (FMV) of property you own (not used in the activity) that secures nonrecourse loans used to finance the activity, to acquire property used in the activity, or to acquire your interest in the activity. |
| Percentage depletion | Increase | Percentage depletion for this year deducted in excess of the adjusted basis of depletable property for the activity. |
| Current year income | Do not include | Do not include the current year income or gains shown on lines 1 through 3. |
| Related-party nonrecourse | Net FMV not entered | Do not enter the net FMV if the nonrecourse loan was from a person who has an interest in the activity other than as a creditor (or is related under section 465(b)(3)(C)) and the activity is one of those the instructions describe. |
| Line 6 | Starting point | Adjusted basis in the activity on the first day of the tax year. Do not enter less than zero. |
| Line 8 | Add | Add lines 6 and 7. |
What line 7 does
Part II is a simplified method of figuring your amount at risk, usable only if you know your adjusted basis in the activity or in your interest in the partnership’s or S corporation’s at-risk activity. Line 6 is the adjusted basis on the first day of the year, line 7 adds the year’s increases, line 9 subtracts decreases, and line 10b is the resulting amount at risk.
Where line 7 stops
The instructions say line 7 covers changes during the current tax year and not the current year income or gains on lines 1 through 3. Current year deductions and losses on lines 1 through 4 are likewise excluded from line 9. The instructions introduce their list with “such as the following,” and Pub. 925 has the definitions and more details.
Sole proprietors
Filers of Schedules C and F must not reduce the amount on line 6 by any liabilities (see Pub. 551 for adjusted basis rules).
Worked example
Made-up numbers. Your adjusted basis in the activity on the first day of the year is $20,000 (line 6). During the year you contributed $5,000 cash and had no other increases. Line 7 is $5,000 and line 8 is $25,000. If line 9 decreases are $2,000, line 10a is $23,000, which is the amount you carry to line 10b and then line 20 if you do not use Part III.
Sources
- Instructions for Form 6198 (11/2025): the line-by-line instructions on this page. Page last reviewed or updated April 30, 2026. Read November 2, 2026.
- Form 6198 (At-Risk Limitations): the printed line wording and arithmetic on the form. Read November 2, 2026.
Instructions for Form 6198, November 2025 revision. The line labels were read from the Form 6198 (Rev. November 2025) PDF the IRS had posted on the date read. Line numbers can shift between years, so check them against the form for your tax year. Examples marked made-up use invented figures; the others reproduce the IRS’s own examples.
Frequently asked questions
What goes on Form 6198 line 7?
Changes during the tax year that increase your amount at risk, such as cash and property contributed and loans you are personally liable for.
Do I include this year's profit on line 7?
No. Do not include the current year income or gains shown on lines 1 through 3.
Is line 7 in Part II or Part III?
Part II, the simplified computation of amount at risk. Part III is the longer, detailed method.
Which loans increase my amount at risk?
Loans for which you are personally liable and qualified nonrecourse financing, used to finance the activity, acquire property used in it or acquire your interest in it.
Where can I read more?
The instructions refer to Pub. 925 for definitions and more details.
Not tax advice
This page summarizes IRS instructions, mostly written for the people who prepare the form, and is not tax, legal or financial advice. A CPA or an enrolled agent can confirm what a line means for your return. Everything runs in your browser; nothing you enter is sent anywhere.