Solved: I incurred a loss in my single member LLC. Turbotax is not showing loss but capping at $0. I thought business losses can be set off against other income. Please help.
cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
New Member

I incurred a loss in my single member LLC. Turbotax is not showing loss but capping at $0. I thought business losses can be set off against other income. Please help.

 
1 Best answer

Accepted Solutions
Highlighted
New Member

I incurred a loss in my single member LLC. Turbotax is not showing loss but capping at $0. I thought business losses can be set off against other income. Please help.

Business income and expenses reported on Schedule C that generate an overall loss will offset other income shown on your tax return.

However, there are a couple of things to keep in mind if that loss is not being shown on your Form 1040. 

First, double check the information in your self-employed income section of your tax return to be sure that you entered that you “Actively participated in this work”.  Without active participation you will not be able to claim the loss.  This information can be found in the General Info > Other Situations section for your self-employed business. 

Second, if the loss is attributed to the business use of your home (home office), then it cannot be used to offset other income.  Instead, any losses due to your home office will be carried forward to future tax returns to offset your future business income.


View solution in original post

8 Replies
Highlighted
New Member

I incurred a loss in my single member LLC. Turbotax is not showing loss but capping at $0. I thought business losses can be set off against other income. Please help.

Business income and expenses reported on Schedule C that generate an overall loss will offset other income shown on your tax return.

However, there are a couple of things to keep in mind if that loss is not being shown on your Form 1040. 

First, double check the information in your self-employed income section of your tax return to be sure that you entered that you “Actively participated in this work”.  Without active participation you will not be able to claim the loss.  This information can be found in the General Info > Other Situations section for your self-employed business. 

Second, if the loss is attributed to the business use of your home (home office), then it cannot be used to offset other income.  Instead, any losses due to your home office will be carried forward to future tax returns to offset your future business income.


View solution in original post

Highlighted
Returning Member

I incurred a loss in my single member LLC. Turbotax is not showing loss but capping at $0. I thought business losses can be set off against other income. Please help.

Is this still true for 2019? I made sure that 'Actively participates' is 'Yes', and no this loss is not attributed to the use of a home office. All loss was the result of expenses being higher than income. Turbo Tax still shows a $0 for Net income, even though the expenses are substantially greater than income.

Highlighted
Level 15

I incurred a loss in my single member LLC. Turbotax is not showing loss but capping at $0. I thought business losses can be set off against other income. Please help.

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.

 

If you have money not at risk you can not take a loss on schedule C. If you don't know what it means then probably All your Investment is at Risk (check Box 32a). It means you are using your own money for the business.  People usually check the wrong box.

Highlighted
Returning Member

I incurred a loss in my single member LLC. Turbotax is not showing loss but capping at $0. I thought business losses can be set off against other income. Please help.

It was the 'at risk' check box that was doing it. THANK YOU!!

 

 

Highlighted
Level 15

I incurred a loss in my single member LLC. Turbotax is not showing loss but capping at $0. I thought business losses can be set off against other income. Please help.

Did you find how to change it?  That can be hard to find.

Highlighted
Returning Member

I incurred a loss in my single member LLC. Turbotax is not showing loss but capping at $0. I thought business losses can be set off against other income. Please help.

Yes, found it. Thanks!

 

Highlighted
New Member

I incurred a loss in my single member LLC. Turbotax is not showing loss but capping at $0. I thought business losses can be set off against other income. Please help.

Same problem but I can not find where to change back.  Any help would be great.  Thanks

Highlighted
Level 15

I incurred a loss in my single member LLC. Turbotax is not showing loss but capping at $0. I thought business losses can be set off against other income. Please help.

That is line 32.  If you don't know what it means then probably All your Investment is at Risk (check Box 32a). It means you are using your own money for the business.

 

Go to the Search box in the upper right and type in Schedule C

Then click on Jump to Schedule C

 

Click on Edit or Review by your Business name

Go to Uncommon Situations - click Edit or Start

Make sure the 5th box is NOT checked for "I have money invested in the Business that I'm not at risk of losing"  and probably check the None of Above Box.

then Continue

 

OR

 

Click on Federal on the Left side

Income & Expenses at the top

Self Employment (2nd item in  listing) click on Start or Show More/Start or Review

Click Review by your Business name

Scroll down to Uncommon Situations - Click Start or Edit

Make sure the 5th box is NOT checked for "I have money invested in the Business that I'm not at risk of losing" and probably check the None of Above Box.

then Continue 

v
Privacy Settings