Mike92ct
Returning Member

Help me understand a Qualified Business Loss Carryforward

While reviewing my return transcript from 2024, all the way at the bottom I see Qualified Business Loss Carryforward $36,806. It started in 2022 as $29xxx and in 2023, it increased by $7xxx.

 

If I pick 2022 tax return to review (its from my landscaping and w2 income), we see where the excess comes from as follows:  SCH 1 1040 line 3: Business income or (loss). Attach Schedule C  $-29xxx.

   Form 8995 continues to show -$29xxx.

 

 

In 2023, what business/tax situation would need to occur to utilize any of the $29xxx listed as above? 

As mentioned above, in 2023 it grew by another $7xxx. The business had another loss

 

 

At the end of the day, I'm just making sure that I don't have additional withholdings I'm due from 2023. It appears NONE of that carryover was used. Seems it wasn't even entered...

 

I keep reading how I might be able to apply the carryforward to the same business' income for the following year.

example, Business made $10K, had $15K in expenses. the extra $5K came off my w2 income. But if we use the same example, but use the carryforward to offset the $10K profit - Then the entire $15K of expenses from the w2 income; same way all losses offset all income in the current tax year.