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Returning Member

Self-Incorporated Business loss should be considered or not? is there any limit of Ordinary Loss?

I entered all detail but does NOT finally submitted my tax return yet.

I earned Nothing in my self-incorporated company but expenses were $1190 in 2019.
In SCHEDULE C  

Did you “materially participate” in the operation of this business during 2019? If “No,” see instructions for limit on losses = No
Line#29 Tentative profit or (loss). Subtract line 28 from line 7. = -1190
Line#32 If you have a loss, check the box that describes your investment in this activity.
If you checked 32a, enter the loss on both Schedule 1, line 3 = It's Checked on 32a

SCHEDULE 1 Line#3 Business income or (loss). Attach Schedule C = 0

Also in Form 8995
1(i): Qualified Business Income or Loss = 0

My question is
Should this loss of -1190 be considered in this 2019 return and should not be 0 ?

Or If not possible due to any limit then
Can I add this loss in my next year 2020 return?

Please suggest.

1 Reply
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Employee Tax Expert

Self-Incorporated Business loss should be considered or not? is there any limit of Ordinary Loss?

I am assuming you mean Self-Employed Business and that you are not incorporated and filing a business return.  Active participation is what determines if your losses are passive and must be limited.

 

I understand you have a loss, but why do you say you did not materially participate?

 

The IRS defines participation as:  In general, any work you do in connection with an activity in which you own an interest is treated as participation in the activity.

 

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