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Line 32 Schedule C

I show a small profit on Line 31, Schedule C. However, I did have a significant loss because I traded in a vehicle I used for business (Form 4797). The program insists I complete Line 32: 32A All investment is at risk, or 32B Some investment is not at risk. 

I have no money invested or borrowed for this business other than what I spent on supplies and the cost of the vehicle, so should I check 32B??? This decision determines a refund of $2900 (32A) vs $1200 (32B).

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1 Reply
KrisD15
Employee Tax Expert

Line 32 Schedule C

Check 32a. If this is your business and you file Schedule C, your business is "at risk" for you.

 

"Some investment is not at risk" would be something a silent partner might choose.

 

HERE is a link with more information 

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