Go back to the Schedule C section in TurboTax and review your entries for your business for this year, specifically the at-risk questions, to make sure you didn't identify any of your investments as not at-risk.
Investment funds not at-risk include:
- Nonrecourse loans used to finance the business, to acquire property used in the business, or to acquire the business that are not secured by your own property (other than property used in the business). However, there is an exception for certain nonrecourse financing borrowed by you in connection with holding real property.
- Cash, property, or borrowed amounts used in the business (or contributed to the business, or used to acquire the business) that are protected against loss by a guarantee, stop-loss agreement, or another similar arrangement (excluding casualty insurance and insurance against tort liability).
- Amounts borrowed for use in the business from a person who has an interest in the business, other than as a creditor, or who is related under section 465(b)(3)(C) to a person (other than you) having such an interest.
If you didn't borrow funds to finance the business or its assets under circumstances such as these, then you can answer "not applicable".
See IRS Publication 925 and this TurboTax tips article for more information regarding the at-risk rules.
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