Question

42. Which of the following activities are specifically exempt from the at-risk rules?

A. Equipment leasing by closely held corporations.

B. The holding of real property placed in service after 1987.

C. The holding of real property placed in service before 1987.

Answer 1

Answer: Option A) Equipment leasing by closely held corporations.

Explanation:

At-risk rules are tax laws that limit the amount allowable deductions that an individual or closely held corporation can claim for taz purposes at a specific activities.

The equipment leasing by closely held corporations actively engaged in equipment leasing and this activity treated seperately.

Loss from the activity not covered by at-risk rules.

• The holding of real property placed service after 1987 it is not exempt from the at-risk rule
• The holding of real property placed service before 1987 it is not exempt from the at-risk rule

Thus, option A) is correct and remaining options are incorrect.