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can I go back and correct a question I answered incorrectly

The question about 32 a, 32 b
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3 Replies

can I go back and correct a question I answered incorrectly

32a and 32b of what form or schedule?  Federal or State?  No one can see your tax return or your account to know exactly what you are trying to correct.

can I go back and correct a question I answered incorrectly

If you need to find where to change the At Risk box on Schedule C line 32  here are my old notes.  Hopefully they still work or will get you close.

 

Go back to your Self-Employment Income.   Click on Edit to review your business entries.   Then scroll down to Uncommon Situations, click Edit and check or uncheck the box.  If your investment is at risk, don't check the box.   You may need to delete Form 6198 if you had the box checked and are now unchecking it.     How to delete forms

 

You can get back to the question about your business investment being at risk by going to the Schedule C and finding the Final Details > Special Situations section (if using TurboTax Home and Business) or the Uncommon Situations section (if using TurboTax Online).  

 

Within those sections, there will be a check-box to indicate 'I have money invested in this business that I'm not at risk of losing; that is, certain cash, property, or borrowed amounts that are protected from loss.'  Uncheck that box if your investment in your business is not at risk.  

MonikaK1
Employee Tax Expert

can I go back and correct a question I answered incorrectly

As @VolvoGirl stated, you can find the at-risk questions again by going back to the Business / Self-employed section of your return. The questions appear in the follow-up section after the main screen where you enter the income and expense items.

 

If you have a business loss and amounts invested in the business for which you are not at risk, you may need to apply a limitation that could reduce your deductible loss. The at-risk rules generally limit the amount of loss (including loss on the disposition of assets) you can claim to the amount you could actually lose in the business.

 

Amounts not at-risk include the following:

 

  • Nonrecourse loans used to finance the business, to acquire property used in the business, or to acquire the business that are not secured by your own property (other than property used in the business). However, there is an exception for certain nonrecourse financing borrowed by you in connection with holding real property.
  • Cash, property, or borrowed amounts used in the business (or contributed to the business, or used to acquire the business) that are protected against loss by a guarantee, stop-loss agreement, or another similar arrangement (excluding casualty insurance and insurance against tort liability).
  • Amounts borrowed for use in the business from a person who has an interest in the business, other than as a creditor, or who is related under section 465(b)(3)(C) to a person (other than you) having such an interest.

If you didn't borrow funds to finance the business or its assets under circumstances such as these, then you can answer "not applicable".

 

See IRS Publication 925 and this TurboTax tips article for more information regarding the at-risk rules.

 

@linneaonan

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