What do I need to check/answer,etc. to get Line 32A on Schedule C checked?

[MaryK4]

This  is the At Risk question- was All or part of your investment at risk?   If all amounts are at risk in this business, check Yes, your loss will not be reduced by the at-risk rules or the passive activity loss rules.   If some investment is not at risk, the at-risk rules apply to your loss. 

In most cases, if you have a business loss and amounts invested in the business for which you are not at risk, you must complete Form 6198 to apply a limitation that may reduce your loss. The at-risk rules generally limit the amount of loss (including loss on the disposition of assets) you can claim to the amount you could actually lose in the business.

[drtaxes]

@mary There isn't a "yes" option. There are 6 boxes. None of them are currently checked. I just need line 32A on my schedule C to be checked

[MaryK4]

Try going to the business information and look for Uncommon Situations.  Make sure the None of the above is checked (see below).

[drtaxes]

@MaryK4 I have tried checking the none of the above, but that still does result in line 32a checked 😕

[MaryK4]

Are you online or desktop?

@drtaxes

[drtaxes]

@MaryK4 Online

[MaryK4]

It checks one of the At-risk boxes if there's a net loss.  If you do not have a loss, try to trigger one by entering an expense in excess of your income, check to see the box is checked, then go back and delete the expense.  @drtaxes

[drtaxes]

@MaryK4 I just tried that and it did not work :( I was advised by a CPA to check that box so I really need to.

[JohnW152]

To select the At-Risk box, try this procedure in TurboTax Online:

1. Type in schedule c the search box, top right of your screen, then click the magnifying glass
2. Click the jump to schedule c link in the search results
3. On the Your 2021 self-employed work summary page, scroll down to the self-employment module you want to enter the at-risk code in, and select Review or Edit to the right
4. Scroll down the Here's your [self-employment] info page, and select Start or Edit to the right of Carryovers, limitations, at risk information, etc.
5. Make sure that the box to the left of 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 is not selected.  You may need to select the box next to I have at risk losses carrying over from 2020, if that’s appropriate.  Then select Continue at the bottom

Please note that you don’t need to make an at-risk selection on line 32 of Schedule C if line 7, Gross income, is more than the total of line 28, Total expenses, and line 30, Expenses for business use of your home. 
 

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[drtaxes]

@JohnW152 My expenses are not more than my income, however my CPA after reviewing everything said that line 32A needs to be checked. 

[AnnetteB6]

If you do not have an overall loss for your Schedule C, then there is no need to check box 32A.  

If you do have an overall loss, then box 32A is automatically checked unless you indicate that some of your investment is not at risk (which is an option presented to you when there is an overall loss for Schedule C).

@drtaxes

[drtaxes]

@AnnetteB6 Okay, that's what I have gathered -- just confused as to why my CPA would tell me that needs to be checked...even though my losses are not greater than my profits. 

[AnnetteB6]

I'm not sure why you would be given that advice when you have an overall profit for your Schedule C business.  

Even the IRS Instructions for Schedule C say that line 32 should only be completed when the expenses exceed the income (page C-14 TIP).

@drtaxes