I am struggling with this too for my 2021 taxes. I have two business rental LLC investments, so I get two K-1's. I first started using TT online Premier in 2019, when I had a large loss ($29,640) in Box 3 on one of the K-1's. Since I also had a small gain in Box 2 ($4,859), I had to enter two K-1's into TT. Both K-1's were for the partnership (same EIN), there was no pass-through on that one. For the other LLC, I also had to enter two K-1's since there was a small gain ($5,370) in Box 2 and a small loss ($323) in Box 3. Also, since that K-1 included a pass-through entity in addition to the partnership, I was able to split it along those lines. But my overall QBI for 2019 was negative (-22,605) as reflected on Form 8995. My Passive Activity Loss carryover (Unallowed Losses), as reflected on Form 8582, was $19,734. In 2020, again I received two K-1's. The first one this time had a loss in Box 2 ($1,135) and nothing in Box 3. I had learned that to have TT properly carryforward passive losses you must continue to enter multiple K-1's, so I did and entered $0 in the second K-1 for Box 3. The second K-1 only had the small gain ($5,485) in Box 2, but again since I had started entering two K-1's, and since there was also a passthrough entity, I again entered two K-1's. It never asked me anything about QBI for previous years while entering the K-1's. It properly carried forward the -22,605 QBI from 2019 on Form 8995 and the Passive Losses of $19,734 on Form 8582. The result was another overall negative QBI (-17,265) on Form 8995 and Passive Activity Loss carryover ($15,384) on Form 8582. Now, for 2021, while entering the K-1's into TT, all of a sudden it's asking for ME to enter the QBI Carryovers on the K-1's that have Passive Loss carryover, which is three of the K-1's, and then to split them up into the years they occurred, FOR BOTH Regular Tax and QBI. I have no idea what that means or how to do that. I do see QBI (Section 199A) Losses by Year Smart Worksheets at the bottom of my 2020 1040 prepared by TT, but of course it is missing one for the K-1 that had the big loss in 2019. And furthermore, the Smart Worksheets for the other two K-1's that had passive loss carryover just have the same amount in the QBI column and the Regular Tax column, which contradicts the different numbers between the Form 8995 and Form 8582. So at this point I don't know what to enter in the QBI Carryover screens for my K-1's. Should I try to make them match what was on the Form 8995 from 2019 and 2020, including entering the negative AND positive QBI's, so the overall QBI will be correct? Or should I just enter what's on the QBI (Section 199A) Losses by Year Smart Worksheets at the bottom of my 2020 1040, and take an educated guess at the numbers for the missing K-1? Any help would be appreciated.
