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October 12, 2023
Question

Why when entering our Schedule C's for my wife and me, this year it does not show a loss like last year even though our expenses are higher than our income?

  • October 12, 2023
  • 1 reply
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1 reply

VolvoGirl
Employee
October 12, 2023

First of all Schedule C is for a single person.  You might need to be filing 2 separate Schedule C, one for each of you.

 

If you are not showing a loss on Schedule C.

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.