Can I amend a tax return if my business investment loss was not reported on that year’s 1040?

by Joseph G. Tropiano II, CPA | Jan 03, 2019

My wife files for both of us jointly via Turbo Tax. I had made a business investment in 2016 which had lost $6,000. It was not listed or reported on the 2016 1040. Can I amend the 2016 tax return and get a full or partial tax credit for the $6,000 at this point?

The 2016 tax return can be amended within three years of the original tax filing, including extensions.  Check out this PICPA Money & Life Tip that explains the process of amending a tax return.

If the loss you mentioned is deductible, you can request a refund relating to the decrease in taxable income.

For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.

Answered by: Joseph G. Tropiano II, CPA, is with Siana, Carr, O’Connor & Lynam LLP in Paoli, Pa.

The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
Financial FAQs

Search the most frequently asked finance and accounting questions and read the responses from PICPA members. Always consult a CPA before taking action.