What does at risk rule mean?

at risk rule meaning in Law Dictionary

tax legislation that restricts deductions for losings in restricted partnerships. Only the financial obligation lost because of the investor or teh quantity invested are claimed.

at risk rule meaning in Business Dictionary

Provision in some taxation laws that limits the deductions permitted for losings incurred by investors in limited-partnerships (commonly formed for real-estate development, oil or fuel research, and motion picture manufacturing). It permits deduction on losings incurred just on the financial obligation that the claimant is directly accountable, as well as on the bucks invested by him or her.