@asender wrote:
I have consulted with my CPA and we are both puzzled by the way TurboTax calculated NOL for me in 2018. Frankly, we are wondering whether there was an error on Turbotax's part. It is impacting my 2020 filing and planning going forward, or possibly via carryback.
I had a significant loss on a business venture than ended in 2018. The loss (From a K-1) went on Schedule 1, Line 22 and was then reflected on Line 6 of the Form 1040.
In Section D of the 2018 Turbotax-created K-1 (entitled Qualified Business Income Deduction Information), line H 1 reflects allowable qualified business income of -$xxxxx. Turbotax also created a Qualified Business Income Component Worksheet and a QBI Deduction Simplified Worsheet reflecting in Line 16 of the Simplified Worksheet a Total QBI Loss carryforward of -$xx,xxx.
That QBI Loss shows up on my 2019 Turbotax return and on my draft 220 Turbotax return.
The CPA and I are trying to understand how I could have this QBI carryover if I took the entire loss on my Schedule 1 and Form 1040 in 2018? Are we missing a tax law aberration or did the Turbotax program create a QBI carryover it should not have? Thank you so much addressing this.
You reported a "business loss" from the K-1. Unless that loss is greater than ALL of the other income on your tax return, you do NOT have an NOL. So don't confuse things by saying NOL.
QBI is something completely different, and yes, that will carry forward even if you fully used the business loss. If your tax professional does not know that, he needs to do some more continuing education on QBI.
Although I'm not 100% certain if the QBI loss still carries forward when the business ends, my first thought is that it does (I would need to look up the rules).
