No Business Income; Carryover loss

[javedade]

Our sole proprietorship had no income in 2019 but has carryover losses from the previous year. Do I need to file Schedule C for this business? I tried deleting the business from TurboTax but I got a pop-up warning about data/info being removed from our files if I delete the business. I don't want any info deleted in case we have to file next year. The business is not closed.

[MarilynG1]

If you have not actually closed your business, you should file Schedule C, even if you had no income to report for 2019.

You can still report any Expenses you had for your business in 2019. 

Your Carryover Loss will show on Schedule 1, Other Income as a negative number. .

[anytaxpayer]

What if the loss if from business use of the home? I have a carry over loss from business use of my home in 2018. This year, I have no profit again. Can I carry over that loss?

[ThomasM125]

You can carry the loss over, but it will remain suspended until a future year when you have income to absorb it.

[Carl]

First, some clarification of words for others reading this thread.

Our sole proprietorship

There is no such thing as "our" sole proprietorship. A sole proprietorship can only have one owner with no exceptions. It's either your sole proprietoship, or your spouse's.

The business is not closed.

Then you really don't have much of a choice here. Especially if your business carries inventory and/or has depreciable assets, and/or claims any business vehicle use. (Even if that vehicle use is less than 100% business use.)

If your business was not formally reported as sold, closed or otherwise disposed of on your 2018 tax return, then chances are good that if you don't file a SCH C with your 2019 tax return, you will get a nasty gram from the IRS 24-36 months after filing the 2019 return without the SCH C. If the business has inventory, assets and/or vehicle use and you don't file SCH C for 2019, that increases your audit chances significantly.

had no income in 2019 but has carryover losses from the previous year. Do I need to file Schedule C for this business?

If you don't, then you risk loosing all your carry over losses permanently. Not saying it will happen that way. Just pointing out that depending on specifics, it could happen that way.

• TurboTax Self Employed Online

[Carl]

Our sole proprietorship

There is no such thing as "our" sole proprietorship. A sole proprietorship can only have one owner with no exceptions. It's either your sole proprietoship, or your spouse's.

The business is not closed.

Then you really don't have much of a choice here. Especially if your business carries inventory and/or has depreciable assets, and/or claims any business vehicle use. (Even if that vehicle use is less than 100% business use.)

If your business was not formally reported as sold, closed or otherwise disposed of on your 2018 tax return, then chances are good that if you don't file a SCH C with your 2019 tax return, you will get a nasty gram from the IRS 24-36 months after filing the 2019 return without the SCH C. If the business has inventory, assets and/or vehicle use and you don't file SCH C for 2019, that increases your audit chances significantly.

had no income in 2019 but has carryover losses from the previous year. Do I need to file Schedule C for this business?

If you don't, then you risk loosing all your carry over losses permanently. Not saying it will happen that way. Just pointing out that depending on specifics, it could happen that way.

[Alicozay70]

Hey I need to file my taxes for 2022 however my schedule C expenses is overstated..connect me to this tax expert..Mariam Worth...to correct my 22 filing tax issue

[HopeS]

If a mistake was made on your 2022 Tax Return you will need to Amend your 2022 tax return by filing Form 1040X.

You should wait until the IRS either rejects or accepts your return.  If your return is rejected, you will be able to go into your account and make the necessary changes to your tax return and re-submit your return. 

If the IRS accepts your return, wait until your return is processed and you received your refund.  THEN you can prepare an amended tax return and e-file or mail it in. You have to be able to work from that return exactly the way it was when it was e-filed originally so it is important that you print a copy of the original return before amending it. 

Here are the steps below for TurboTax Online:

• If you used TurboTax Online, simply log in to your account and select “Amend" a return that was filed and accepted.”
• Revisit your Schedule C expenses and make the necessary changes.
• You will also need to add the reason for amending Form 1040X.

For TurboTax Desktop:

• If you used our CD/download product, sign back into your return and select “Amend a filed return

See additional information in the link below:

How to Amend

@alicozay70