nocarters
New Member

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Hi BillM223,

I am having this exact problem. I notice the difference (When I add rental expenses my refund goes down) on form 8995 and it's related to the QBI as you mentioned. When I add no expenses for my rental I see:

Line 2 > 0 , line 3 (carryover from prior year) contains <0 and then 4 is the difference. 20% isthen applied and that gets moved to my 1040 line 10. 

However, when I add expenses, the lines 2 and 3 on the 8995 are 0, thus nothing is added to 1040 line 10 and I dont' get the additional deduction.

This is so counter-intuitive that I can't believe it's correct. Why would I want to claim the expenses?

Thanks!