Schedule C Questions

[rebateme]

I checked off the wrong answer by accident in Schedule C questions asking me if the buisness is at risk or not. I chose its not but it is. I couldn't go back to fix. Any idea how to do this?

[PatriciaV]

The question about At-Risk limitations (Schedule C Line 32) appears under Uncommon Situations at the bottom of the Schedule C list of expenses and income - but only if your business is showing a loss. If that applies to your business, click the pencil icon (edit) to the right of Uncommon Situations, then click Continue to bring up the At-Risk question. You can change your answer on this page.

According to the IRS Instructions for Schedule C: "You don’t need to complete line 32 if line 7 is more than the total of lines 28 and 30." In other words, Line 32 is blank if your business reports a profit for the year.

[VolvoGirl]

If you have money NOT at risk of losing, you can not take a loss on schedule C. If you don't know what it means then probably All your Investment is at Risk (check Box 32a). It means you are using your own money for the business. People usually check the wrong box.

If you need to find where to change the At Risk box on line 32 here are my old notes. Hopefully they still work or will get you close.

Go back to your Self-Employment Income. Click on Edit to review your business entries. Then scroll down to Uncommon Situations, click Edit and check or uncheck the box. If your investment is at risk, don't check the box. You may need to delete Form 6198 if you had the box checked and are now unchecking it. How to delete forms https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-forms/view-delete-forms-turbotax-onl...

You can get back to the question about your business investment being at risk by going to the Schedule C and finding the Final Details > Special Situations section (if using TurboTax Home and Business) or the Uncommon Situations section (if using TurboTax Online). One user said…. Scroll to the bottom of the screen until you see the Uncommon Situations section, then click Start or Edit beside Carryovers, limitations, at risk information.

Within those sections, there will be a check-box to indicate 'I have money invested in this business that I'm not at risk of losing; that is, certain cash, property, or borrowed amounts that are protected from loss.' Uncheck that box if your investment in your business is not at risk.

[rebateme]

Found it. Thank you