You might try revisiting your entries for your business for this year, to make sure you didn't identify any of your investments as not at-risk. Check your last year's return to determine whether you had a loss from your Schedule C business that wasn't deducted. Investment funds not at-risk include:
- Non-recourse loans used to finance the business
- Cash, property, or borrowed amounts used in 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.
Section 465 (d) carryover refers to the at-risk rules of Section 465 of the Internal Revenue Code. If you identified in the Schedule C interview that any of your investment was not at-risk, this would prevent a net loss from being deductible in the current year and being carried forward.
See the IRS instructions for Form 6198 for more information.
See also IRS Publication 925 and this TurboTax tips article for more information regarding the at-risk rules.
You can preview your return before filing to review the forms that TurboTax has prepared from your entries and to find out how your taxes were calculated. See here for details.
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