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After passage of the 1986 Tax Reform Act, a real estate investor who obtains nonrecourse purchase money financing from his seller, or whose loan otherwise
After passage of the 1986 Tax Reform Act, a real estate investor who obtains nonrecourse purchase money financing from his seller, or whose loan otherwise fails to qualify as qualified nonrecourse financing, is able to write off losses on his investment only to the extent of the amount he has at risk - his invested cash plus debt on which he is personally liable.
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