Turbo Tax Business LLC | Qualified Business Income and Carryovers

Forum|Forum|5 years ago
February 27, 2021
1 reply
12 views

Hello

I am doing my business taxes now. Last year I had no income and reported a 10K loss.
This year I see a flow for Qualified Business Income. There is a form in there with fields to add Carryover amounts.

I have explained this flow is just for my information and will not impact the filing. But I am curious if this carryover can help me reduce income taxes next year if I have more income?

Can I carry over losses for a few years to then reduce income or increase income deductions when I make profits?

Thanks

TurboTax Business Windows

JeffreyR77

Level 10

Yes, your LLC is a pass-through entity. At the end of the year, all income and expenses are allocated to the LLC members per the LLC agreement and 'pass-through' to you personal income tax return. Carryover items can be applied in future periods to offset income in those periods - again, income and expenses in those years will be allocated to the LLC members at the end of the year.

watergirl2Author

Level 4

Thank you

Do I need to fill out the Qualified Business Income and Carryovers worksheet in order to carry over the losses or is this an accounting number I keep on my records.

The Turbotax flow has a "worksheet" where I can enter amounts qualified for carryovers including last year. I have small losses both years 2019 that was reported in my 2019 return and personal taxes in the k1's.

I am not sure if I add the full amount or just a qualified % or of I can just leave blank. The return and the k1s will reflect the 2020 loss

Thanks