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Article #: 10301
Schedule C loss not showing on the return
If the C screen in data entry is marked Did NOT materially participate in 2024, the activity is treated as passive and is subject to passive loss limitations, calculated on Form 8582. This may prevent the loss from carrying to Form 1040, Schedule 1, Part I, line 3.
If the loss is limited, it may not flow to Schedule 1, line 12, but may be carried forward to future years. Other passive income may affect the outcome on Form 8582 and Form 1040.
If the Schedule C is a passive activity, and the loss is being carried forward, review Form 8582, the Wks CARRY, and the Wks PAL in View/Print mode. When you view Schedule C, line 31 will display the literal PAL to identify that this is a passive activity.
Tip If the business is not a passive activity, remove the check mark from line G.