!

CAUTION

If you checked box 36b because some investment isn’t at risk and you don’t attach Form 6198, the processing of your return may be delayed.

Figuring your loss. Before determining your loss on line 34, you must check box 36a or 36b to determine if your loss from farming is limited by the at-risk rules. Follow the instructions below that apply to your box 36 activity.

All investment is at risk. If all your investment amounts are at risk in this activity, check box 36a. If you also checked the “Yes” box on line E, your remaining loss is your loss. The at-risk rules and the passive activity loss rules don’t apply. See Line 34 , earlier, for how to report your loss.

But, if you checked the “No” box on line E, you may need to complete Form 8582 to figure your loss to enter on Line 34 . See the Instructions for Form 8582.

At-risk loss deduction. Any loss from this activity not allowed for 2025 only because of the at-risk rules is treated as a deduction allocable to the activity in 2026.

More information. For details, see Pub. 925 and the Instructions for Form 6198. Also, see Form 461 and its instructions.

Note: Form 1040-SS filers, skip this line.