Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

I am being audited and IRS is questioning the 465(d) amount…

I am being audited...

I am being audited and IRS is questioning the 465(d) amount that was carried over from 2014 to 2015 by my Turbo Tax. What is this?

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

My wife is self employed and had a large amount of expense and her income was low due to shoulder surgery in 2015. She works out of our home.

Accountant's Assistant: Is there anything else important you think the Accountant should know?

No, except 2014 schedule C there is 0$ income or loss. That was determined by Turbo Tax as well.

Show More
Show Less
Ask Your Own Tax Question
Answered in 3 hours by:
3/19/2018
Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7,469
Experience: Extensive Experience with Tax, Financial & Estate Issues
Verified

Hello, my name is***** goal is to give you a complete & accurate answer. I am working on your request now & I will respond as soon as possible.

Ask Your Own Tax Question

Internal Revenue Code 465(d) refers to the "At Risk" rules.

Section 465 (d) carryover refers to the at-risk rules of Section 465 of the Internal Revenue Code. Your losses are limited to the amount you have "at risk" in the activity. A loss that was disallowed because of the at-risk rules is generally treated as a deduction from the same activity in the following tax year (a carryover).

The figure you see for Section 465 (d) carryover is the amount of loss you weren't able to take last year and may be able to take this year.

You may not have checked off the "At Risk" box on Schedule C, basically indicating that you (or your wife) was responsible for all of the expenses claimed on Schedule C in excess of revenue.

You'll have to wait to see exactly what they are asking about your 2015 return as it relates to the carryover from 2014.

Let me know if you have any follow-up questions.

Please remember to rate my response as that is the only way the SITE will credit me for assisting you.

Thanks very much,

Steve G.

Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7,469
Experience: Extensive Experience with Tax, Financial & Estate Issues
Verified
Stephen G. and 87 other Tax Specialists are ready to help you
Ask your own question now
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Stephen G. Your Own Question
Stephen G.
Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7,469
7,469 Satisfied Customers
Experience: Extensive Experience with Tax, Financial & Estate Issues

Stephen G. is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
Should I use 465d or NOL carryfoward? I have a pizzeria (sch
Should I use 465d or NOL carryfoward? I have a pizzeria (sch C) that had a loss of 24,959 last year. It was allowed and was the only income on tax return. This year company has $14000 profit, I would … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
My wife began the year with no inventory. She then spent
Hi, my wife began the year with no inventory. She then spent $1,478 on used items for her eBay business. She sold $582 and realized a loss for the year. Can this loss deducted on Schedule C and form 1… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
My sister had a capital loss. She took $3000 in 2012 but did
My sister had a capital loss. She took $3000 in 2012 but did not file federal taxes again until last year and forgot about the capital loss which she is still entitled to. S … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have large capital stock losses from 2014, but have not
I have large capital stock losses from 2014, but have not filed for 2015 & 16 since I had only Social Security. Can my 2014 losses be carried forward to offset 2017 Capital gains? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,419 satisfied customers
My wife is a self-employed piano teacher. Up until the 2014
My wife is a self-employed piano teacher. Up until the 2014 tax year, she reported a profit on her piano teaching business. In 2014, she went back to school to earn a degree in music. For that year, s… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
SOLE PROPRIETOR - HEALTH INSURANCE DEDUCTION OF THE YEAR. My
SOLE PROPRIETOR - HEALTH INSURANCE DEDUCTION FOR PART OF THE YEAR. My wife became sole proprietor on 15th of September 2015 and had a net income much greater than an amount of health insurance I paid … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My daughter had a partnership that was dissolved in 2014.
Customer: ***** *****, My daughter had a partnership that was dissolved in 2014. She had a huge loss on her K1 that year. She was a 51% general partnet. The loss was from 3 bakeries that she had opera… read more
Mark D
Mark D
Enrolled Agent
Master's Degree
1,338 satisfied customers
When filing a 2009 amended 1040; particularly Schedule C;
When filing a 2009 amended 1040; particularly Schedule C; and you sustained a loss of $138,000; how can I carry this loss over to 2010, 2011, 2012, 2013 and possibly 2014?… read more
USTaxAdvising
USTaxAdvising
Partner
Bachelor's Degree
609 satisfied customers
My wife and I are "married, filing jointly. She received a
My wife and I are "married, filing jointly. She received a Schedule K-1 from a revocable trust reporting a passive loss for 2014 of $10,880. Our AGI before deducting this loss is $90,835. Can we deduc… read more
Megan C
Megan C
Certified Public Accountant (CPA)
Master's Degree
8,655 satisfied customers
my wife is a masseuse and gets large tips. they may or may
my wife is a masseuse and gets large tips. they may or may not be for additional services. how does that get reported or does it need to be… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
Wife and husband each own 50% of an S- corp (small size
Wife and husband each own 50% of an S- corp (small size pizza store). Wife wants to transfer 30% of ownership to Husband as a gift and transfer 20% of ownership to her friend as selling stock. 1) When… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Turbo Tax listed the Section 465(d) on my 2010 Taxes. I was
Turbo Tax listed the Section 465(d) on my 2010 Taxes. I was audited by the IRS last week and they said that I did not have any Risk Carryover from my business. What will the IRS do with this amount - … read more
Phillip Bell, EA
Phillip Bell, EA
Tax Advisor
Bachelor's Degree
191 satisfied customers
I have used Turbo Tax to do my taxes over the past several
I have used Turbo Tax to do my taxes over the past several years. This past year, I received a 1099 as a contractor. After inputting the total for the 1099 of 46,000. , turbo tax calculated that I owe… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
Husband and wife are both self-employed and file separate schedule
Husband and wife are both self-employed and file separate schedule C's on their joint return. Husband pays for health insurance premiums to BCBS, which insures both husband and wife equally. His healt… read more
Jesse Handel
Jesse Handel
Tax Preparer and Chemist
Bachelor's Degree
3 satisfied customers
I have a caitol loss of around $10000in n2008, am self employed,
I have a caitol loss of around $10000in n2008, am self employed, and my business lostaround $4000. how doI carry the osses forward?… read more
bizmatters
bizmatters
J.D.
666 satisfied customers
I am helping my son-in-law with their taxes. He received a ...
I am helping my son-in-law with their taxes. He received a 1099-Misc form. Only income, nothing taken out. Trying to find where this money ($850) fits in the return is frustrating. He received the mon… read more
Mark D
Mark D
Enrolled Agent
Master's Degree
1,338 satisfied customers
Margie purchased one new asset during the year on November
21. Margie purchased one new asset during the year (five-year property) on November 10, 2006, at a cost of $417,000. She made the § 179 election. The income from the business before the cost recovery … read more
RD
RD
Self Employed
Master's Degree
1,164 satisfied customers
can a husbands self-employed loss be applied against
can a husband's self-employed loss be applied against his wife's self-employed gain? Or against his employee income?… read more
Wendy Reed
Wendy Reed
Master Tax Advisor Enrolled Agent
Master's Degree
60 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x