What is li e 32 mean on scheduel c

[kramlall5583]

What is line 32 on scheduel c

[bluedeb · Accepted solution]

 Schedule C, lines 32a (All investment is at risk) and 32b (Some investment is not at risk) Schedule C, Lines 32a and 32b are marked as follows: If there is a loss on the Schedule C and no information is entered on Screen 6198 (including T,S,J designation), then Line 32a (All investment is at risk) is marked.

2019 Instructions for Schedule C (2019)

https://www.irs.gov/instructions/i1040sc

[VolvoGirl]

Schedule C line 32 if you have a loss - at Risk Investment

If you don't know what it means then probably All your Investment is at Risk (check Box 32a). It means you are using your own money for the business.

Check Box 32b Not at Risk, if you have amounts invested in this business for which you are not at risk, such as the following:

---Non-recourse loans used to finance the business

---Cash, property or borrowed amounts used in the business that are protected against loss by a guarantee, stop-loss agreement, or other 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.

If you have money not at risk you can not take a loss on schedule C.

If the wrong box is checked I have the steps to correct it.

[drtaxes]

How do I correct it?! I need line 32a checked, but it is not!

[DaveF1006]

 Go to the section where you entered your Schedule C. You should see a summary page entitled here is your XXX information.  Go to the section that says Carryovers, limitations, at risk information, etc.>edit. Make sure the box isn't checked that says 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.

If you are using the software program, you could go to the forms mode and then make the manual check mark in line 32 of the Schedule C.

@drtaxes

[drtaxes]

@DaveF1006 None of those boxes are checked. I am using online version

[VolvoGirl]

Why do you keep asking?  I thought we settled it in your other post.  You only need to check it if you have a loss.  If you want to check it you will have to print out your return and check it in ink and mail it.

[drtaxes]

@VolvoGirl Because my CPA confirmed today that it should be checked so I am still trying to figure out how to do it.

[VolvoGirl]

Ask another CPA.