Schedule C Profit or Loss for 2023

In TurboTax Desktop Home & Business, have you selected at-risk limitations I have money invested in this business that I am not at risk of losing at the screen Do you have any of these other business situations?

 

To check, follow these steps:

 

• Across the top of the screen, select Business.
• Across the top of the screen, select Business income and expenses.
• Select I'll choose what I work on.
• At the screen Let's gather your business info, select Start/Update to the right of Profit and loss from Business.
• At the screen Here's the business info we have so far, select Edit.
• At the screen Your business, scroll down to Final Details.
• Select Start/Update to the right of Carryovers, limitations, summary, at-risk, etc.
• At the screen Do you have any of these other business situations, make sure that you have not checked the box to the left of I have money invested in this business that I am not at risk of losing.

 

 

 

 

 

 

If you have the Desktop program switch to Forms mode and open Schedule C.  Does it show a loss on line 31?

If you are not showing a loss on Schedule C.

Some expenses, such as home office or section 179 depreciation can only be used to reduce your schedule C taxable income to zero, and not to create a loss. Excess deductions for these carry over to the next year.  And you have to answer yes to both questions about exclusive and regular use, not just one.  The area of your home office must be used regularly and exclusively for business to deduct it.

 

Or you checked the box on 32b saying Some Investment is Not at Risk.

Thanks,

I changed 32B on Schedule C to Investments at Risk.  "Here's a picture of Your 2023 Income" is now reflecting the loss.

 

Robin