Question

Schedule C at risk box says checked and I can’t find it during the scan and it won’t let me fix it there...help

Forum|Forum|6 years ago
June 6, 2019
2 replies
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TurboTax Free Edition Online

Line 32a on Schedule C indicates all investment is ''At-Risk''. You can follow these instructions below to change this entry in TurboTax Home & Biz -

Open your tax return
Type “Schedule C" in the search box, top right of your screen, then click the 'Find' button
Click the "jump to schedule c" link in the search results.
You will arrive at the Your Business summary page where you can add/edit a business
Click Edit next to the business where you need to make a change
Now, you should arrive at a Business Information summary page
Scroll down until you see the section for Final Details (see attached screenshot). Click the Update button next to Special Situations.
The next page will have the “at-risk” question at the bottom (see screenshot)
If you accidentally indicated that the at-risk rules applied to you the first time through, then you can then edit this question by unchecking it.

J

JJEM1

RE: the $ "at risk question," which for 2022 is Schedule C line i.
I'm trying to UNCHECK the box, because it says, "check this box if some of your investment IS NOT at risk" - as it's all my money, I understand it's ALL at risk, but I can't UNCHECK the box.
I go to FINE DETAILS under Business Income and Expenses, but when I try to fix it by checking NONE OF THE ABOVE, it stays STUCK on THIS answer: “I have money in this business that I am not at risk of losing; that is, certain cash, property, or borrowed amounts that are protected from loss”
I’ve tried to go back to checking NONE OF THE ABOVE and UNchecking the other answer many times, but it doesn’t stay checked – any insights?
Thank you!
JJEM1

PatriciaV

Did you have a loss this year? The at-risk question is triggered if you have a loss. Check to see if your return includes Form 6198. If so, you won't be able to check the box for "All investment is at risk" without deleting Form 6198.

If you are using TurboTax for Desktop, you can delete a form using Forms Mode. Open the form and click the Delete Form button in the form footer.

If you're using TurboTax Online, open your return and go to Tax Tools in the left column, Choose Tools >> Tool Center >> Delete a form. Click Delete next to Form 6198 and confirm.

Otherwise, you may need to upgrade to TurboTax Live so an agent can work with you via screenshare.

@JJEM1

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B

bstevens2

I am unable to delete the form 6198. I select delete and go thru the steps but it still appears in the forms page. Any ideas?

M

MonikaK1

Go back to the Schedule C section in TurboTax and review your entries for your business for this year, specifically the at-risk questions, to make sure you didn't identify any of your investments as not at-risk.

Investment funds not at-risk include:

Nonrecourse loans used to finance the business, to acquire property used in the business, or to acquire the business that are not secured by your own property (other than property used in the business). However, there is an exception for certain nonrecourse financing borrowed by you in connection with holding real property.
Cash, property, or borrowed amounts used in the business (or contributed to the business, or used to acquire the business) that are protected against loss by a guarantee, stop-loss agreement, or another similar arrangement (excluding casualty insurance and insurance against tort liability).
Amounts borrowed for use in the business from a person who has an interest in the business, other than as a creditor, or who is related under section 465(b)(3)(C) to a person (other than you) having such an interest.

If you didn't borrow funds to finance the business or its assets under circumstances such as these, then you can answer "not applicable".

See IRS Publication 925 and this TurboTax tips article for more information regarding the at-risk rules.

@bstevens2

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