Yes, you summarized it perfectly.
1. 8995 losses are not used against both ordinary income and passive income.
- 8995 carryforwards are only used against Qualified Business income.
2. I terminated the business in 2022. Therefore, those losses will not be used in the future...
- If someone owns multiple eligible businesses: … (the) taxpayer must net their QBI, including losses, from multiple trades or businesses (including aggregated trades or businesses). So, qualified business losses from one business will offset QBI from other trades or businesses (including aggregated trades or businesses) in proportion to the net income of the trades or businesses with QBI.
- On the other hand, what if you don’t have another business against which you can net losses? In this situation: … the carried forward negative QBI will be treated as negative QBI from a separate trade or business for [the] purpose of determining the QBI Component in the next taxable year.
- Simply put, a loss doesn’t really go away. Rather, the IRS allows businesses to carry forward QBI losses to subsequent years.
3. Unless I show a profit in another business.
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