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john109
New Member

When reviewing my return, it is asking me to check this entry "Schedule C: Investment at risk boxes must be entered." What does this mean? Thank you.

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4 Replies
JohnW222
Expert Alumni

When reviewing my return, it is asking me to check this entry "Schedule C: Investment at risk boxes must be entered." What does this mean? Thank you.

When you file a Schedule C, you have to identify whether you're using your own money for the business.

At risk means you're using your own money, or borrowed funds for which you're personally liable, for the business.   A loss may only be deducted up to the amount you personally have at risk.

You must check a box on Schedule C indicating whether or not your business is considered "at-risk."

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Ashcrew7
New Member

When reviewing my return, it is asking me to check this entry "Schedule C: Investment at risk boxes must be entered." What does this mean? Thank you.

How do I know which box I should check?
I have only invested my own money, and the loss this year is because of the purchase of new appliances.

LeonardS
Expert Alumni

When reviewing my return, it is asking me to check this entry "Schedule C: Investment at risk boxes must be entered." What does this mean? Thank you.

You are being about your investment into your business.  You will check Box 32a All investment is at risk.

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When reviewing my return, it is asking me to check this entry "Schedule C: Investment at risk boxes must be entered." What does this mean? Thank you.

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.  If you have money not at risk you can not take a loss on schedule C.

 

 

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