What does this mean, Carryovers, limitations, at risk information, etc?

[MichaelL1 · Accepted solution]

Do you have losses in prior years, that were not allowed? 

Losses can be limited if you are not "At Risk" and this really means "Can you lose money in the business?" and most small businesses are "At Risk" because if you don't pay a bill, the creditor can come after personally.

Please post of comment if I have addressed everything you asked about.  Thank you.

[charly563]

Still kinda lost here. I have a lease on dtg printer and another machine. If i can not pay. they will take my machine. which would be a loss for me.

[charly563]

This is what they are asking me:
I have unused section 179 expenses carrying over from 2017.
I have passive activity losses carrying over from 2017.
I have at risk losses carrying over from 2017.
During 2018, I disposed of non depreciable business assets or section 1252, section 1254 or section 1255 property.
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.

[charly563]

no, I started my business in the middle of the year. I didn’t start working or making anything until 2018.

[MichaelL1]

Printer and old machine if on a lease, you are deducting the lease payments as expenses.

Look at 2017 and see if you were able to:
1) take all the depreciation allowed --If so, no 179 carry-forward
2)  Passive losses--if you have a loss on 2017 that was used then you have no passive loss carryover.
3) same as #2
4) did you sell any business assets?
5) rare to have money you can't lose in a small business.  If bank gives you a loan, then will take other assets including personal assets until loan is paid.

[MichaelL1]

Ok so you then would have none of these if business started in 2018.  No carry forwards, no un-used 179, no passive losses, and you are at risk