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leric9027
New Member

How do I amend my 2016 return to report a "business loss?"

I started selling inventory on Amazon last Fall. Bought inventory from a supplier in China via Alibaba and added my own logo to it and shipped it to AMZ for sale.

I liquidated my inventory because it wasn't profitable and ended up with more expenses than revenue.

How do I amend my 2016 return to show this loss? I did not incorporate as a legal business entity (LLC, partnership, s-corp, etc...).

3 Replies
rjs
Level 15
Level 15

How do I amend my 2016 return to report a "business loss?"

"Amend" has a special meaning with regard to tax returns. Did you already file your 2016 tax return without reporting the business income and expenses? If you have not yet filed, you don't amend your return, you just add the business information before you file. You only amend a return that has already been filed and processed.

When you posted your question you indicated that you are using TurboTax Free Edition. In order to enter business expenses, and show a loss, you will have to upgrade to TurboTax Self-Employed. Since you did not form any business entity, your business is a sole proprietorship and you report it on Schedule C as part of your personal tax return.

If you already filed the return without the business information, and it has not been rejected, go to the following link for instructions to amend a 2016 tax return that you filed with TurboTax Online.

https://ttlc.intuit.com/questions/3402261-how-do-i-amend-my-2016-turbotax-online-return

An amended return has to be filed on a special form, Form 1040X. It cannot be e-filed. You have to print it and file it by mail. It takes the IRS up to 16 weeks to process an amended return.

Don't file the amended return until your first return has been accepted and you have received the original refund.

leric9027
New Member

How do I amend my 2016 return to report a "business loss?"

I already filed my 2016 return. Actually, this would be an amendment on an amended return. I had already amended my 2016 once before to reflect an updated W2 form that my employer had sent me.

Would I still file a Form 1040X even after I've already submitted an amended return?
rjs
Level 15
Level 15

How do I amend my 2016 return to report a "business loss?"

Yes, an amended return is always filed on Form 1040X, no matter how many times you amend.
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