U.S. · Tax forms
Schedule F line 36, investment at risk.
Which box to check when the farm has a loss.
Line 36 asks you to check the box that describes your investment in the activity: 36a, all investment is at risk, or 36b, some investment is not at risk (attach Form 6198). You do not need to complete line 36 if line 9 is more than line 33, that is, if you have a profit.
Look up a line item
Result
Line 36 boxes and next steps (2025 instructions and form)
| Item | Meaning | What the IRS says |
|---|---|---|
| Line 35 | Reserved for future use | Nothing to enter |
| Line 36 | Investment box | Check the box that describes your investment and see instructions for where to report your loss |
| Box 36a | All investment is at risk | If line E is “Yes”, your remaining loss is your loss and the at-risk and passive activity rules do not apply |
| Box 36b | Some investment is not at risk | Attach Form 6198; omitting it may delay processing |
| Line E = No | Passive activity rules | You may need Form 8582 to figure the loss for line 34 |
| Profit | Line 9 more than line 33 | You do not need to complete line 36 |
| Not at risk | Examples in the instructions | Nonrecourse loans not secured by your own property; amounts protected by guarantee or stop-loss arrangements; amounts borrowed from a person with an interest in the activity or a related person |
Why the box exists
In most cases, if you have a loss from a farming activity and amounts invested in it for which you are not at risk, you must complete Form 6198 to figure your allowable loss. The at-risk rules generally limit the loss, including loss on the disposition of assets, to the amount you could actually lose in the activity.
Which box when
Check 36a if all your investment is at risk. Check 36b if some is not, such as the nonrecourse financing, guaranteed amounts or loans from related persons listed in the instructions. Before determining the line 34 loss you must check 36a or 36b.
What happens after the box
With 36b and a “Yes” on line E, complete Form 6198 to find the allowed loss and the passive activity rules do not apply. With 36b and a “No” on line E, Form 6198 comes first and Form 8582 may follow. See line 34 for how to report the loss.
Worked example
Ruiz Farms has $40,000 of gross income on line 9 and $52,000 of expenses on line 33, a $(12,000) loss before limits. All the money in the farm is the owner’s own cash, so box 36a is checked and, with “Yes” on line E, the $(12,000) goes on line 34 (Form 461 may still limit it). Had a nonrecourse loan funded part of it, 36b and Form 6198 would apply. Names and figures are made up.
More line pages in this set
Related lines: Schedule F Line 34, Schedule F Line 29.
Sources
- Instructions for Schedule F (Form 1040) (2025): Line 36 and Line 34 instructions, including the at-risk rules. Page last reviewed or updated April 30, 2026. Read November 2, 2026.
- Schedule F (Form 1040) (2025): The printed line 34 to 36 wording. Read November 2, 2026.
Tax year 2025 instructions (page last reviewed or updated April 30, 2026). The line labels were read from the Schedule F (Form 1040) PDF the IRS had posted on the date read, which is the 2025 edition; line numbers can shift between years, so check them against the form for your tax year. Names and figures in worked examples are made up.
Frequently asked questions
What is Schedule F line 36?
The box that describes your investment in the activity: 36a if all investment is at risk, 36b if some is not.
Do I have to complete line 36 if the farm made money?
No. The instructions say you do not need to complete line 36 if line 9 is more than line 33.
When do I attach Form 6198?
When you check box 36b because some investment is not at risk. The instructions warn that omitting it may delay processing of your return.
What counts as not at risk?
Examples include nonrecourse loans not secured by your own property, amounts protected by a guarantee or stop-loss agreement, and amounts borrowed from a person with an interest in the activity or a related person.
What is line 35?
It is marked “Reserved for future use” on the form, so line 36 follows line 34 directly in practice.
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.