How to have Schedule C report loss for deducting from other income?

[AlanT · Accepted solution]

If your self-employment income and expenses result in a loss, the loss will automatically be transferred to the income section (provided that all of your investment was at risk) of your income tax return as a negative number and subtracted from your other income.  

[siegead]

Thank you for responding ... however, I am simply showing a "0" in terms of business income and the overall tax filing is not showing any deduction to income.

[VolvoGirl]

Schedule C goes to schedule 1 line 12 Business Income
Which gets added to 1040 line 6

But Some expenses, such as home office or section 179 depreciation can only be used to reduce your schedule C taxable income to zero, and not to create a loss. Excess deductions for these carry over to the next year.  And you have to answer yes to both questions about exclusive and regular use, not just one.  The area of your home office must be used regularly and exclusively for business to deduct it.

Or you checked the box on 32b saying Some Investment is Not at Risk.