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gkelly2
New Member

My federal due skyrocketed when I checked a box that I didn't understand stating something like at risk investment and now I can't find that box. Any tips?

 
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2 Replies
MayaD
Expert Alumni

My federal due skyrocketed when I checked a box that I didn't understand stating something like at risk investment and now I can't find that box. Any tips?

If you have self employment income, revisit that section and:

  1. Scroll down to Final Details then Special Situations. If using TurboTax online go to Uncommon Situations
  2. Continue to the screen Do you have any of these other business situations?
  3. See if the box next to I have money invested in this business that I'm not at risk of losing; that is, certain cash, property, or borrowed amounts that are protected from loss is checked.

 

At risk is a test that the IRS uses to see if you can deduct losses from certain investments and business interests that you own.

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My federal due skyrocketed when I checked a box that I didn't understand stating something like at risk investment and now I can't find that box. Any tips?

What it means…….

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.

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