8004 / To what types of investment activities do the “at risk” rules apply

…holding, producing, or distributing motion picture films or video tapes;

…farming (including raising, shearing, feeding, caring for, training, or management of animals);

…leasing of depreciable personal property (and certain other “IRC Section 1245” property, which includes both real and personal property and certain other tangible property that is being, or has been depreciated or amortized¹);

…exploring for, or exploiting, oil and gas reserves (see Q to Q );

…exploring, or exploiting, geothermal deposits;

…holding real property (see Q for effective date and transitional relief rules);

…all other activities engaged in by a taxpayer in carrying on a trade or business or for the production of income.²

Apparently, if a publicly traded partnership is taxed as a corporation (see Q ), the partnership is not subject to the at risk rules unless it is closely-held (generally, more than 50 percent control by five or fewer individuals).³ For these purposes, a qualified retirement plan described in IRC Section 401(a) as well as a plan providing for the payment of unemployment compensation benefits under IRC Section 501(c)(17) are considered individuals.⁴