Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 6, 2019 5:42:34 AM

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

0 7 2070
1 Best answer
Level 15
Jun 6, 2019 5:42:35 AM

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

7 Replies
Level 15
Jun 6, 2019 5:42:35 AM

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

Level 15
Jun 6, 2019 5:42:37 AM
Level 15
Jun 6, 2019 5:42:37 AM

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

Level 15
Jun 6, 2019 5:42:38 AM

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>

New Member
Jun 6, 2019 5:42:40 AM

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

Level 15
Jun 6, 2019 5:42:41 AM

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

New Member
Jun 6, 2019 5:42:43 AM

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