It is 'not working' meaning:
- You are not generating a qualified business income deduction, or
- You are receiving an error message?
A qualified business income deduction is reported on line 13 of the 2020 Federal 1040 tax return and line 15 of IRS Form 8995.
It is possible that a net loss by one entity will offset net income on another entity. So, it is possible that the net loss of entity A is offsetting the net income of entity B. It is also possible for the 2020 IRS Form 8995 to have all net income but a QBI carryforward loss from 2019 wipes out the QBID for 2020.
When you say there is a net loss and net income, are there two K-1's? Or is there one K-1 with reporting multiple properties? There may be an attached statement reporting as below.
K-1 A B
Box 1 1,000 1,500 (500)
K-1 box 1 reports $1,000 but the attached statement reports two properties that make up the $1,000 box 1 entry.
Are the entries that you described in box 1 or box 2?
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