199A and investment loss

[jsonp]

My understand that 199A was suppose to help deduction but when i enter renter loss on 199A my refund actually reduce by about $66.

I have a composite K1 , when i do my tax on turbotax i fill in 20 Z , leave amount blank and it ask me to fill 1099A info

I filled in rental income (loss) = -5000 (negative 5000)

i notice my refund reduce $66. is this correct because i thought the point of this was to help deduct 20% of income. 

If I fill in rental income (loss) = 5000 (positive 5000), my refund actually increase by about $200.

This seem that my loss in rental with 199A actually hurt me more.

Can someone help me explain reason? can i just skip 199a so i don't have to lose some of my refund?

[Anonymous_]

@Mike9241 

[Mike9241]

if you have QB Income then you can get a QBI deduction of up to 20%. if you have a business loss, you get a negative QB deduction of up to 20% but that can only be used to offset the QBI deduction generated by other activities. to the extent not used it becomes a carry forward.

look at form 8995

20Z goes nowhere as you are going through entering the K-1 data there will be further questions about QBI 

example extremely simplified

activity 1  business income $10,000  QBI deduction $2,000

activity 2 business loss $5000 QBI deduction offset -$1000

net QBI deduction $1,000

I suppose you can skip it completely but you cannot report QBI only for businesses with income and ignore businesses with a loss.  I doubt if you can skip the QBI reporting if there are net business losses because those unused QBI losses must be carried over to offset any future QBI income. 

[Critter-3]

This is where the "Refund-O-Meter" can be problematic and should not be looked at until all tax information is entered in the program and the return has passed the review tab.

One cannot pick and choose which things they want to add or subtract from a return depending on the way it affects the bottom line.  If you are eligible for the QBI deduction then you cannot choose to leave it out even if it affects any credits you are eligible for.