IRS Form 6198 is used to figure out how much of a loss from an at-risk activity you can deduct. Our fillable Form 6198 opens in your browser, so you just need to enter your figures, adjust them as your numbers change, and download a clean copy.
Form 6198
2025
Trusted by accountants
Official IRS form
How to Fill Out Form 6198
- Open the printable Form 6198 in your browser
- Complete Part I with your current-year profit or loss
- Figure your amount at risk in Part II or Part III
- Enter your deductible loss in Part IV
- Review your entries, then download or print the form
What Is Form 6198 Used For?
Form 6198 is used to figure your current-year profit or loss from one at-risk activity, the amount you have at risk, and your deductible loss. The Form 6198 instructions organize this into four parts, and Section 465 caps the deduction at your at-risk amount.
Who Should Use Form 6198?
You should use IRS Form 6198 if you are an individual, estate, trust, or certain closely held C corporation claiming a loss where part of your investment is not at risk. The Form 6198 at-risk limitations reach partners and S corporation shareholders too.
When Is Form 6198 Due?
The Form 6198 due date matches your income tax return deadline, since it’s attached to it. Most individuals file by April 15th, or October 15th with an extension. Fiscal-year filers follow their own return schedule.
What Happens If Form 6198 Is Not Submitted?
If Form 6198 is not submitted, the IRS can disallow the at-risk loss you claimed and recalculate your tax. No separate late fee exists, so Form 6198 penalties usually arrive as a 20% accuracy-related penalty plus interest on the underpayment.
How and Where Do I File Form 6198?
You file Form 6198 by attaching it to your federal income tax return, never by mail. The Form 6198 filing requirements call for one form per activity, so keep each copy with your other stored legal and tax documents.
How to Get Your Form 6198
1Open the blank Form 6198
2Fill in your activity, basis, and at-risk amounts
- 3
Download Form 6198 to your device
Frequently asked questions
#1. How do I get a blank Form 6198?
You can get a blank Form 6198 from the IRS or pdf.net. Nevertheless, our editor fills either one. Download the IRS copy and drop it in, or skip that step and start here.
#2. Can I submit the Form 6198 electronically?
Yes, you can submit Form 6198 electronically as part of your e-filed return. The form goes with Form 1040, 1041, or 1120 as an attachment. A prior-year Form 6198 example can help when you reach Part III.
#3. What if my Form 6198 is missing information?
If your Form 6198 is missing information, the IRS usually sends a notice proposing to disallow the at-risk loss. Reopen your saved copy, correct the flagged lines, and reply by the date on the notice. File Form 1040-X only if other income or deductions also change.
#4. Can I fill out my Form 6198 online?
Yes, you can fill out Form 6198 online in your browser. Open the form in our online PDF editor and type straight into each line; no software installation, no printing and scanning.
#5. Is this form free?
This form is free to open and complete. However, downloading a filled-out form requires an active subscription.
#6. Can I correct mistakes on Form 6198?
Yes, you can correct mistakes on Form 6198 by attaching a corrected copy to Form 1040-X. File within three years of the original return, and amend later years too if the change shifts your carryforward loss.
#7. How long does it take to process Form 6198?
Form 6198 has no processing time of its own, because the IRS reviews it alongside your return. Most e-filed returns clear within 21 days; paper returns take longer.
#8. Do I need to file Form 6198 for rental property?
A Form 6198 rental property filing is required only when part of your investment is not at risk. Standard bank mortgages count as qualified nonrecourse financing and are treated as at-risk, so most landlords skip the form. Seller-financed or related-party loans change that.