The IRS instruction for line 3 is:
"Include prior year qualified loss carryforwards even if the loss was unreported or the trade or business that generated the loss is no longer in existence. Also, include the QBI portion of losses or deductions suspended from use in calculating taxable income in the year generated that are included in taxable income in the current year."
If you had more than one business last year, the carryover may be coming from the other business, even if it is closed.
If you had a home office deduction that you couldn't fully deduct last year, that could be the source as well.
If you have REIT dividends, your qualified dividends and net capital gains are considered here as well.
If you have any K-1 forms in your return, the loss could be coming from there.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
