How do I get line 32A to be checked on Schedule C?

[DawnC]

Search for Schedule C and use the Jump to Schedule C link.    Click Edit next to your self-employment income source.   Scroll down and click on Edit next to Uncommon Situations.   Uncheck the box next to I have money invested that I am not at risk of losing (protected from loss) ....   That will mark 32A on Schedule C as an at-risk investment.  

It's uncommon for Schedule C businesses to not be at risk, but this can happen if the business is funded with non-recourse loans, money, or property protected by a stop-loss agreement or loans from a non-creditor who has an interest in the business. In those cases, the business owner isn't allowed to take a loss on money or property they weren't "at-risk" of losing in the first place.

[drtaxes]

I appreciate the detailed instructions. Unfortunately that is already unchecked and turbotax still has not checked line32 a 😕

[drtaxes]

I appreciate the detailed instructions. Unfortunately that is already unchecked and turbotax still has not checked line32 a 😕 @DawnC 

[DawnC]

Do you have a loss on Schedule C?   

[drtaxes]

@DawnC I have had a CPA review and he has told me to make sure line 32a is checked

[DawnC]

Go through the Review section in TurboTax (left side menu) - It will clear up all loose ends.    Once TurboTax tells you that your return is ready to file and clear of any errors, the box should be checked.   There are other sections of Schedule C that you are to go through before the form will be finalized (and 32a checked).

Other things you might want to check in your business's General Profile are:

Did you indicate you actively participated?

Did you are subject to DOT limits?

Did you indicate you have assets that are Indian Reservation property?

Did you indicate your business is in a disaster area?

Did you acquire Kansas Disaster Zone or GO Zone property?  

Marking box 32a will aid in applying the At-Risk Limitations to business losses.   Before the IRS implemented at-risk limitations, investors in certain business activities—especially real estate—stood to profit more from losses and tax deductions than from investments gains.

To prevent investors from benefiting from purposeful bad business deals and to promote investments in credible business ventures, Congress acted to limit the deductions investors could take when facing business losses.

[drtaxes]

@DawnC I have gone through everything I need to. My CPA reviewed my return and told me I need to check 32A. How can I get 32A to be checked??

[SDun12]

Do you have a loss this year?  It only matters if you do.  If you're showing any profit, then the box doesn't need to be checked (and your CPA should know this, but if he or she cares that much then he or she should probably be doing the return).   Turbo Tax will check it when it applies (when you have a loss and indicate that you don't have a limited investment)