What is the maximum allowable business loss deduction for schedule c?

[SweetieJean · Accepted solution]

There is no maximum, assuming you can support your data.

[SweetieJean]

But see this:
<a rel="nofollow" target="_blank" href="https://www.irs.gov/newsroom/business-or-hobby-answer-has-implications-for-deductions">https://www.i...>

[SweetieJean]

Also keep in mind that certain business expenses must be amortized, not deducted.

[SweetieJean]

If you checked Box 32b on Schedule C, you must attach Form 6198. Your loss may be limited.
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/f1040sc.pdf">https://www.irs.gov/pub/irs-pdf/f1040sc.pdf</a>

[leslie_hess]

Define "at risk" the entire investment is in hard assets. Ie vehicle, equipment ect . My wife's food truck business which has not begun a serving phase. In reading the rules in the IRS handbook it sounds  like all of this investment is at risk. Does that sound correct?  Thank you

[SweetieJean]

Those are start up expenses. They cannot be deducted until she is actually open for business.

[leslie_hess]

She just obtained her business license and her tax I'd number. Does that qualify?