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debbiemartin7
New Member

I have Artist income and expenses this year. I have more expenses than income. Why am I not getting the business loss expenses on Schedule C?

 
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Accepted Solutions
KittyM
Level 2

I have Artist income and expenses this year. I have more expenses than income. Why am I not getting the business loss expenses on Schedule C?

The inability to deduct losses generally comes from your response to one or two questions in the Schedule C interview.  

First, please review the "At Risk" selections in your Schedule C interview.  If you have accidentally chosen "Not at risk," you are not able to deduct the losses from your business.  (It is very uncommon for a Schedule C filer to be "Not at risk," which basically means that you can't lose money on your business.)

To get to the "At Risk" questions, 

  • Choose your Federal Return and the Self-employed or Business option
  • Scroll down to Final Details and Show more
  • Update or revisit Special situations
  • The first page is "Do you have any of these other business situations?"
  • Be certain you have not checked the box for "I have money invested in this business that I'm not at risk of losing..." (Unless it actually applies.)

Second, be sure that you have correctly marked the "Active Participation" question in the Business Profile section.  You are, as an artist, most likely actively participating in your business.  Do not check the box that says you are not.

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1 Reply
KittyM
Level 2

I have Artist income and expenses this year. I have more expenses than income. Why am I not getting the business loss expenses on Schedule C?

The inability to deduct losses generally comes from your response to one or two questions in the Schedule C interview.  

First, please review the "At Risk" selections in your Schedule C interview.  If you have accidentally chosen "Not at risk," you are not able to deduct the losses from your business.  (It is very uncommon for a Schedule C filer to be "Not at risk," which basically means that you can't lose money on your business.)

To get to the "At Risk" questions, 

  • Choose your Federal Return and the Self-employed or Business option
  • Scroll down to Final Details and Show more
  • Update or revisit Special situations
  • The first page is "Do you have any of these other business situations?"
  • Be certain you have not checked the box for "I have money invested in this business that I'm not at risk of losing..." (Unless it actually applies.)

Second, be sure that you have correctly marked the "Active Participation" question in the Business Profile section.  You are, as an artist, most likely actively participating in your business.  Do not check the box that says you are not.

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