Qualified Business Income (QBI) passive activity loss carryover is created when losses from one QBI qualified business are netted against the gains from another.
If the net overall QBI is less than zero, it is carried forward as a loss from a separate qualified business and will reduce any potential QBI deduction in the following year (IRC Sec. 199A (c)(2)).
Section 199A (c)(2) states that:
If the net amount of qualified income, gain, deduction, and loss with respect to qualified trades or businesses of the taxpayer for any taxable year is less than zero, such amount shall be treated as a loss from a qualified trade or business in the succeeding taxable year.
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