Form 6198 instructions-2026

1. Click ‘Get Form’ to open it in the editor.
2. Begin by entering your identifying number and the name(s) shown on your tax return at the top of the form.
3. In Part I, report your current year profit or loss from the activity. Fill in lines for ordinary income, gains from asset sales, and any other income not previously included.
4. Proceed to Part II for a simplified computation of the amount at risk. Enter your adjusted basis and any increases or decreases for the tax year as instructed.
5. Complete Part III if necessary, detailing your investment in the activity and calculating any increases or decreases since the effective date.
6. Finally, in Part IV, determine your deductible loss by comparing amounts from previous sections and follow any additional instructions provided.

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