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Business & farm
Search for Schedule C and use the Jump to Schedule C link. Click Edit next to your self-employment income source. Scroll down and click on Edit next to Uncommon Situations. Uncheck the box next to I have money invested that I am not at risk of losing (protected from loss) .... That will mark 32A on Schedule C as an at-risk investment.
It's uncommon for Schedule C businesses to not be at risk, but this can happen if the business is funded with non-recourse loans, money, or property protected by a stop-loss agreement or loans from a non-creditor who has an interest in the business. In those cases, the business owner isn't allowed to take a loss on money or property they weren't "at-risk" of losing in the first place.
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‎April 12, 2022
6:10 PM