Schedule F loss carryover

[AliciaP1]

No, the QBI loss is only included in how much QBI deduction you will receive when you start reporting income from the farm (instead of loss).  For example:

     2021                                                                                                           2022

w2 wages = 100,000                                                                                w2 wages = 100,000

sch F loss = -40,000    QBI loss = -40,000                                              sch F inc =     50,000  QBI = 50,000

AGI = 60,000                                                                                              AGI = 150,000

Std Ded = 25,900                                                                                      Std Ded = 25,900

QBI Ded = 0                                                                                               QBI Ded = 2,000 (20% of total QBI $10,000 (50,000 - 40,000)  - the loss reduces your deduction)

Taxable Inc = 34,100                                                                                 Taxable Inc = 122,100

So, while they both do reduce your income you are not double counting the loss.  If in my example, the QBI loss carryover from 2021 had contained multiple years and been in the $100,000 range (from your first post), the $50,000 of QBI in 2022 would have reduced the QBI loss carryover to $50,000 and there would still be no QBI deduction because the loss eliminated all QBI.

@farmer875 

[farmer875]

Alicia, thanks for your patience. Ive found a mistake I made where I double entered the QBI loss during the interview and corrected that. I believe my return should look like your example, it makes sense and I understand how that part works now. But that's not how it is showing up. My QBI loss carryover should be going towards the QBI deduction but instead it's being used as an expense on schedule F by turbotax. I really don't think it's right. 

[AliciaP1]

It should not be an expense on Schedule F, but a deduction on your 1040 line 13.  It would be helpful to have a TurboTax ".tax2022" file that is experiencing this issue.

You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions: 

Go to the black panel on the top of your screen and select Online. 

1. Scroll down to and select Send tax file to Agent. 
2. You will see a message explaining what the diagnostic copy is.  Click send through this screen and then you will get a Token number. 
3. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

@farmer875 

[farmer875]

Token # 1108676

[AliciaP1]

Upon review, that is your NOL being applied to the current year, not the QBI loss.  Everything is reporting correctly now on your forms and schedules.

Your situation now resembles a blend of the 2 years' examples I gave.  You have net income for your farm in 2022 before any carryovers.  The combined income from the farm and other earned income (W2 & taxable interest) is enough to cover the entire NOL.  That is the amount listed on your Schedule F reducing the net income from the farm.  

Your QBI loss is applied to the current year's farm net income and now if you look at your Carryover Wks line 14a is blank (total used in 2022 so none to carryover) and QBI on line 29 is now reduced by the current year's income.  You still do not qualify for the deduction because the 2022 net income wasn't enough to exhaust the entire loss carried over, but it made a serious dent in it!  

@farmer875 

[Farminator]

Hello, I have a similar question to this one.  I entered the farm loss as "at risk" carryover on my 2024 taxes for a loss in 2023 on my farm.  It put the amount in misc. expenses as Section 465(d) Carryover on Sch. F as expected, but when I look at the Carryover to 2024 Smartsheet and the QBI Smartsheet, it is listed as prior to 2018 instead of at 2023 where the loss was incurred.  Also, looking at the QBI Ded Summary, Turbotax brought the QBI loss forward, but didn't bring the farming loss forward.  The program help says "If you didn't use the transfer option, enter any schedule F at risk loss carryovers...", I did use the initial transfer to start the return, but I am unaware of any other transfer option they may be talking about.  Should I have used a NOL to bring the loss forward or did I correctly us the "At-Risk" Carryover for the farm?  The farm is our only source of income except for a property sale and bank interest.  I did use the Step-by-step to enter the data.

Thank you.

[PatriciaV]

This experience has been reported to our development team and should be resolved with the update scheduled for Friday March 7, 2025. Because updates are released after business hours Pacific time, we recommend waiting until the day after to run Review again.

Note that TurboTax Online is automatically updated after midnight on form release dates. TurboTax for Desktop is updated when you first open the program.

@Farminator