Check your Form 8995 (or 8995-A) for 2019 to see if there is an overall loss of income. If so, then this is the figure you enter in the line smart check. If you did not have an overall loss in 2019 then you can enter zero.
The qualified business income deduction (QBID) requires that any loss from the prior year must be carried forward to be netted with any current positive income to arrive at the correct QBID.
Losses are usually beneficial for tax purposes, losses from passthrough entities potentially adversely affect the 20% QBID under Sec. 199A. These losses, referred to as negative QBI or qualified business losses, decrease positive QBI from other sources, and the remaining losses carry forward to offset future QBI, reducing the amount eligible for the 20% QBID.
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