@Mike9241Could you please help me clarify concept of Sch C loss and its effect on QBI?
I experimented with software with either Yes or No question to SSTB
I am trying to understand concept of Sch Expenses and their effect on QBI. I think it depends how to answer to question SSTB in Sch.
I don’t have income on Sch C, only expense which are losses.
If I answer YES to SSTB (just for concept)
Q: Does Sch C loss, produces a SSTB loss so in the it reduces QBI by that amount? Lets say I have Sch C loss of $1000 so it will reduces QBI by this amount?
Form 8995 – with Yes answer to SSTB
Q 11 : Reduction to QBI = $1000
Q 14: QBI = 0 (QBI component worksheet)
And it is also showing 0 or nothing as Net QBI (QBI deduction Summary)
It is now showing 0 or nothing as carry over losses worksheet.
If I answer No to SSTB question
Form 8995 – with NO answer to SSTB
It is NOT showing (it is blank) any reduction to QBI income (question 11 in QBI worksheet)
It is showing $- 1000 QBI income (Item 14 in QBI component worksheet)
And it is also showing -1000 as Net QBI (QBI deduction Summary)
It is now showing $-1000 as carry over losses
I am assuming I should answer yes to SSTB in Sch C and else where in K1s.
Since I don’t have any QBI income so there is no 199A or QBI deduction for me this year.
Q: Is this Sch C Loss produces a QBI deduction for me or QBI loss for me as you have already told earlier unusable deduction don’t carryfoward but QBI losses are carry forward?
Q: Should this Sch C expenses/loss be carry over for future years as in Carry over Worksheet?
