John experienced a loss after investing in the S corporation of which he was an employee. In what way do the at-risk rules affect a taxpayer?

a) The at-risk rules limit the amount of losses a taxpayer can recognize from most activities to the amount of their at-risk investment in the business or activity.

b) The at-risk rules increase the taxpayer's liability for the business losses they recognize from most activities.

c) The at-risk rules allow the taxpayer to deduct losses in their business without regard to the amount of their investment in the business or activity.

d) The at-risk rules do not allow them to recognize or deduct any S corporation loss because it was a passive activity.