How At-Risk Rules Limit S-Corp Loss Deductions
The at-risk rules in IRC Section 465 govern whether you can actually deduct your S corporation's losses. They test whether you have real skin in the game, preventing deductions for losses that exist only on paper. For a founder who values control, this is about avoiding year-end surprises and keeping a firm grip on funding and tax strategy. It is not abstract. It affects what loss you can claim and when.
