You must carryforward a qualified business income loss carryforward into the subsequent year's qualified business income deduction calculation. A Net Operating Loss carryforward is an election the taxpayer may make.
This IRS FAQ Q22 also explains
Any negative QBI carried into the subsequent tax year as a qualified business net loss carryforward will be used in that subsequent year to determine the net qualified business income or loss in that year.
If your deductions for the year are more than your income for the year, you may have an Net Operating Loss that may be carried forward.
There are rules that limit what you can deduct when figuring an NOL. In general, the following items are not allowed when figuring an NOL.
- Capital losses in excess of capital gains.
- The section 1202 exclusion of the gain from the sale or exchange of qualified small business stock.
- Nonbusiness deductions in excess of nonbusiness income.
- The NOL deduction.
- The section 199A deduction for qualified business income.
See also this.
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