Schedule C, lines 32a and 32b

Enter information on Schedule C, Lines 32a and 32b, as follows:
  • If there's a loss on Schedule C and you don't enter information in the
    6198
    screen (including T,S,J designation), then Line 32a (All investment is at risk) is selected. The loss then carries to Form 1040.
  • If there's a loss on Schedule C and you do enter information on the
    6198
    screen (including T,S,J designation), then Line 32b (Some investment is not at risk) is selected. The loss then carries to Form 6198 to figure any allowed loss against at-risk basis rules.
note
If Schedule C, Line 31 [Net Profit or (Loss)] is a positive number (in other words, it's a profit), Lines 32a and 32b won't be selected.

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