After re-installing + 2 hours with tech support + 2 hours with live tax advice + half a day putting all prior passive losses and QBI onto a spreadsheet = DONE!
Felt extremely annoyed by the time I started putting together the spreadsheet, but very satisfied once I figured it out.
Tech support - was not able to help since they do not understand what the numbers mean, so they can't tell if Turbo Tax is doing something wrong. Therefore, they can't even open ticket to describe the issue; hence, we still don't have a patch to this issue. They suggested I imported my data into the online version, which still resulted in wrong data, but even harder to fix because you don't have Form View (between myself and the agent, we couldn't figure out if there is such a view). They then suggest that I reach out for live tax help.
Live tax help - Maybe I was unlucky, but it seems that the CPA I was on with (12 years + experience) didn't seem to understand how passive gain and loss should flow from one year to another. Having spent the previous two hours with tech support, I had noticed that the software simply imported prior year losses into the wrong years, so I walked the CPA through that scenario first to get confirmation that is the fixed for K-1 with only losses. Next, we moved onto the ones with gains/income, that's when they suggested I just simply match the amounts to the correct year, but that still created unexplainable losses for years prior to 2018. Next, it was suggested that I changed my QBI suspended losses to cancel out the excess losses prior to 2018. That works, but it didn't feel right. It did give me some insights into how the numbers affect one another.
From there, I decided to created a spreadsheet to populate all prior passive losses and QBI losses by tax year from 2022-2024 to see how the number flow from one year to another to understand how positive gain/income impact the calculation from one year to the next. That's when it all made sense, and I ended up having to make correction to the Federal Carryover Worksheet, which I didn't even know existed.
Whatever corrections you make relating to K-1, always go back to Form 8995 and QBI Ded Summary to check the results. Every number in those two forms should make sense to you otherwise the math/data is off. Otherwise, any error that exists will be carried forward to future years.
