26 CFR § 7.465-5 - Examples.

---
identifier: "/us/cfr/t26/s7.465-5"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "26 CFR § 7.465-5 - Examples."
title_number: 26
title_name: "Internal Revenue"
section_number: "7.465-5"
section_name: "Examples."
chapter_name: "INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY"
subchapter_number: "A"
subchapter_name: "INCOME TAX"
part_number: "7"
part_name: "TEMPORARY INCOME TAX REGULATIONS UNDER THE TAX REFORM ACT OF 1976"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "26 U.S.C. 7805, unless otherwise stated."
cfr_part: "7"
---


# 7.465-5 Examples.

The provisions of § 7.465-1 and § 7.465-2 may be illustrated by the following examples:

|  |  |
| --- | --- |
| Initial amount at risk | $10,000 |
| Plus: Items which increased basis other than amounts described in sec. 465(b) (3) or (4) | 0 |
| Total | 10,000 |
| Less: Distribution | 3,000 |
| J's amount at risk on effective date | 7,000 |

|  |  |
| --- | --- |
| Initial amount at risk | $10,000 |
| Plus: Items which increased basis other than amounts described in sec. 465(b) (3) or (4) | 0 |
| Total | 10,000 |
| Less: Distribution | 3,000 |
| Portion of loss ($12,000) in excess of portion of basis not at risk ($18,000) | 0 |
| Total | 3,000 |
| J's amount at risk on effective date | 7,000 |

|  |  |
| --- | --- |
| Initial amount at risk | $10,000 |
| Plus: Items which increased basis other than amounts described in sec. 465(b) (3) or (4) | 0 |
| Total | 10,000 |
| Less: Distribution | 3,000 |
| Portion of loss ($23,000) in excess of portion of basis not at risk ($18,000) | 5,000 |
| Total | 8,000 |
| J's amount at risk on the effective date | 2,000 |

[T.D. 7504, 42 FR 42198, Aug. 22, 1977]