Form 8995 lCarryforward Question

[fsolares61]

Hello,

I have a (10,819) carryforward amount in Line 16 of my 2023 taxes. Can use this negative amount to offset my 2024 QBI tax?

Please advise

[MaryK4]

The Qualified Business Income (QBI) is not a tax it is a deduction.  When you have a profit, the deduction reduces the taxable income.  If you have a loss, you cannot claim the QBI deduction until you absorb all the losses.  See Qualified Business Income Deduction.

[fsolares61]

thank you for your answer. I had a 10K loss in 2023, and in 2024, I profited from my rental property. (7K) Where in Turbo Tax will I enter the Carryforward 10K, and if I understood correctly, this carryforward amount will increase my deduction?

[DianeW777]

You Qualified Business Income Deduction (QBI) carryforward loss must be confirmed and/or entered each year until used up.

Open your TurboTax Online or TurboTax Desktop return 

1. TurboTax Online: Click on Tax Home (left panel) > Select Income or work on other income > Edit beside your Business
2. Scroll to Business Summary > Click on Qualified Business Income > Continue to follow the prompts and answer the questions.
3. TurboTax Desktop: Select the Business tab > Continue to Business Income > 
4. Scroll down to Less Common Business Situations > Select Net Operating Loss/QBI Carryforward Loss > 
5. Continue to follow the prompts and answer the questions.