Sorry to come back to this after so long. I just want to double check that I’m interpreting this correctly.
As I understand it, negative QBI is tracked separately from positive QBI and accumulates for each PTP until the partnership is sold, at which point it is released and netted with any positive QBI of the taxpayer’s in that year. Is this correct? This seems to be the purpose of the Turbotax screen that asks “Any Qualified Business Income (QBI) Carryovers?”, i.e. keeping a running tally of negative QBI for each PTP.
In contrast, positive PTP QBI has its 199a deduction taken in the year it is received, and therefore does not go toward reducing the accumulated negative QBI for that partnership. Correct?
If total taxpayer QBI is negative (e.g. due to a PTP sale releasing a lot of accumulated negative QBI) then I assume the net amount goes on Line 7 of Form 8995 and is carried forward there to the next year until used. Correct?
