@brettbrinkman Since form 8995, line 6, is the sum of QBI income/loss from many different sources, TT only transfers "allowable" QBI gain/loss to the form. For example, if you had a second PTP, which actually earned a profit and reported $1000 in QBI, you'd want line 6 and 8 of form 4995 to show $1000. It should NOT show $135, which is what would happen if you netted the $1000 with the -865 from MMP. So line 6 only gets 'allowable' QBI income.
If you look at the help for this form (right click on line E10 'Allowable QBI from this business' and choose 'About QBI...') you'll see this quote: "If there are no losses for this business subject to at-risk or passive loss limits, then line E3 will transfer to line E4. Otherwise, line E4 will be limited to the portion of loss allowed under Treasury Regulations 1.199A."
When the PTP reports a loss on line 1, its losses are subject to passive loss limits. So its losses aren't 'allowable' for QBI and don't transfer to 8995. When you change line 1 to a positive number, you eliminate that restriction and make the loss 'allowable', so it flows to 8995. So the program is working correctly.
I'm not sure why your accountant put the -865 on line 6, other than it made no difference to your return and may have just been convenient. If they actually think that -865 is 'allowable', and would have netted it against (for example) the $1000 introduced above, you'd have to talk to them about their interpretation of the code.
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**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
