@poiuytrewq0987654321 you may want to supplement your question if this does not answer your question.
So what is the Qualified Business Income ("QBI") deduction? It is a tax deduction that allows eligible self-employed and small-business owners to deduct up to 20% of their qualified business income on their taxes.
Then why do I have to track QBI carryforward losses? If the total QBI from all trades or businesses is less than zero, the taxpayer's QBI Component will be zero and any negative amount is carried forward to the next taxable year, where it would offset QBI in the tax year to which it is carryforward.
So the QBI carryforward loss could impact the QBI deduction in a future tax year. So if you have $3,000 loss in all three entities with a K-1, your carryforward would be $9,000. So to get a QBI deduction in a future year your QBI would need to exceed $9,000.
All the best,
Marc T.
TurboTax Live Select Time Tax Expert
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