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Level 1
March 24, 2026
Question

When putting a zero in ar risk operating loss box doesn’ work?

  • March 24, 2026
  • 1 reply
  • 44 views
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1 reply

DawnC
Employee Tax Expert
Employee Tax Expert
March 24, 2026

That is usually a YES or NO question - see Is my business investment at risk?   

 

You should probably answer yes, assuming you own a sole proprietorship or other Schedule C business. In the tax world, "at risk" simply means that the business owner is personally liable for the business's losses. It has nothing to do with the business's chances of success or failure.

 

It's uncommon for Schedule C businesses not to be at risk, but this can happen if the business is funded with nonrecourse 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.

 

Review this in the Self-Employment section - Schedule C.     Do you have a checkmark next to at-risk losses?   If so, TurboTax will ask you for an amount.  If it is zero, remove the checkmark there.   

 

 

 

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