I see from your additional comments that you figured out the
problem on your own. However, for the
benefit of other users that may have the same issue, here is more information.
Under the Uncommon Situations
> Carryovers, Limitations, At Risk information section of your
self-employed business, there is a check-box to indicate that you have money invested in your business
that you are not at risk of losing.
When that box is checked, you will not be able to deduct a loss from the
business against your ordinary income.
See the help content below for more details:
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.
The basic rule is that you can't deduct a loss from your investment
or business interest if the loss doesn't actually cause you to lose money.
Money you've invested in your business that is not at
risk can include:
- Nonrecourse loans; that is, financing for which you're not
personally liable.
- Cash, property, or borrowed amounts protected against loss by
a guarantee, a stop-loss agreement, or a similar agreement.
- Money borrowed from a person who has an interest in
the business, other than as a creditor.
