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mchu519
Level 3

TurboTax doesn't seem to offset my taxes owed when I lost money in my business

I have a job where I get W-2, investment income with capital gains, and single-member LLC.  After submitting my W-2, investment income I owe about $1k in taxes.  After submitting my business income and expenses my business incurred a lost of $4k from consultation, fees, advertisement, etc.  I was expecting the taxes owed to drop significantly but to my surprised it was unchanged.   What's going on?

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mchu519
Level 3

TurboTax doesn't seem to offset my taxes owed when I lost money in my business

Thanks for the tip.  I went back to the Business section where Sch C is.  I figured the Active Role might be cause so I change the answer from "No" to "Yes".  Right after I selected "Yes" it was able to offset my entire tax owed with some tax return back.  The reason I selected "No" before was because I really don't spend much time on this business because its automated.  

 

ActiveRole.png

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2 Replies
Rick19744
Level 12

TurboTax doesn't seem to offset my taxes owed when I lost money in my business

A couple of thoughts:

  • Have you actually looked at your return to understand what your Schedule C looks like?
  • You need to go through the TT questions and make sure you answer the question about at-risk correctly.  You need to make sure you check the box where it asks if all of your investment is "at-risk".
*A reminder that posts in a forum such as this do not constitute tax advice.*
mchu519
Level 3

TurboTax doesn't seem to offset my taxes owed when I lost money in my business

Thanks for the tip.  I went back to the Business section where Sch C is.  I figured the Active Role might be cause so I change the answer from "No" to "Yes".  Right after I selected "Yes" it was able to offset my entire tax owed with some tax return back.  The reason I selected "No" before was because I really don't spend much time on this business because its automated.  

 

ActiveRole.png

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