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Level 1
posted Oct 6, 2020 11:30:22 AM

Form 8995 - line 3, prior year loss. I had rental property loss in 2018 but it applied against my other income that year. Why does it show up on form 8995 this year?

I had a loss in 2018 for a rental property, but had income overall. In 2019 I had income for rental property (and other income as well). The form 8995 line 3 is showing 2018's loss. I'm not sure it should be there as I did not carry forward this loss.

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1 Replies
Level 15
Oct 6, 2020 1:12:49 PM

If the rental qualifies as a "business", it is correct.

 

Form 8995 is for the Qualified Business Income (QBI) deduction.  Even though you claimed the loss last year, that loss will affect your QBI for future years.  So it is not carrying forward the loss itself (you already used that), but is carrying forward some information for calculating the QBI deduction.