QBI Operating Loss

[Dave2360]

I had the exact same issue.  It would not allow me to file my return unless a number was put in there when I did the review.

[minpinfan]

Hi Dave, did you ever get clarification on your situation with multiple properties?  I am in the same boat with three rental properties, two of which had losses.  I can't tell how to find the proper amounts to these questions as they are needed by property, not a total over all properties. Curious if you were able to get a satisfactory response. Thanks in advance!

[zygoaty1]

So i looked at the link you provided, but it doesn't tell me where to find the 2019 QBI operating loss so i can enter it on the Sch E QBI passive op loss form.  This was always done automatically in the years past, and I use Turbo Tax every year.  Where do I find the amount I need to enter??????

[KathrynG3]

You will need the Federal Carryover Worksheet from 2019. Please see the screenshot below so you can see what you are looking for:

Keep in mind this carryover will have the QBI carryover amount from ALL QBI qualifying activities. If you have something other than rental, you will need to calculate how much to assign just to the rental.

[Edited 4/25/2021 | 12:20 PM PST]

@zygoaty1

[Laurelby]

Thank you, so what if I have multiple rental properties?  How do I break them out?

[DaveF1006]

Yes, there is a specific way for you to combine (referred to aggregation) all your businesses so you can claim QBI. Here are the steps.

1. Go to federal>wages and income>rental properties and royalties>start
2. Enter all of your rental properties information including income expenses, profile etc.
3. Once everything is entered, you should reach a page that says your Rental and Royalty Summary. Select edit on one of the properties.
4. Select  Done with Rental property at the bottom of the page.
5. Now as you scroll through the screen, there will be a screen that asks if you wish to use safe harbor to qualify for a deduction, here you will say yes if you agree to its conditions that are listed on the page.  Please look at the first screenshot I provided.
6. The next screen will remind you to add more properties to the enterprise if you haven't done so. You will do this for each property you wish to claim QBI.  You will add these in the manner I have described in steps 4 and 5 above.  
7. just as a precaution, you may or may not decide to aggregate your properties for this deduction. Please read this Turbo Tax link and read the article written by Champ Carl as he lists some compelling reasons you might not wish to choose this election, at least for some of your properties.

[Diana46]

Problem: Federal Review is asking for Schedule E QBI Passive Operating Loss and Passive Operating Loss but does not indicate which fields are missing.

Solution: Probably zero (0). 

I worked with two specialists and an expert this evening to interpret what appears to be a coding bug. In the rental property sales carryover section, Passive loss and QBI deduction ask for a by-year value to be entered. If the total loss spans multiple years, and some of the loss is from prior to 2018, one should be able to enter 0 (zero) in the 2018 & 2019 fields, however, the page will not accept the value zero.

During the Federal Review, I was redirected to check the values for the Schedule E form to fill out the Passive Operating Loss and QBI Operating Loss, yet, there are no fields with these titles and it was unclear what to complete (no fields were being highlighted by the system to indicate what is missing). When I entered a value, the next message indicated that the number could not be greater than zero. I entered a negative value (I suspected this was incorrect) and clicked Continue. I was greeted with a Success message that didn't feel accurate. So I navigated back to the original Carryover section and confirmed my suspicions; the original entry is not allowing zero, yet the form is requiring zero in the 2018 and 2019 fields. I corrected the values I had changed in the Federal Review, left 2018 and 2019 blank, returned to the Federal Review section and added zeros when prompted for the missing values.

I believe this is a bug and will cause folks to enter an incorrect value. Hopefully, mine is correct.

[latefiler5]

NEVER DID GET AN ANSWER TO MY QUESTION -- STILL HAVEN'T FILED THE 2022 TAXES AS A RESULT.   YIKES! i'D BE GLAD TO HEAR ANY SUGGESTIOPNS YOU MIGHT HAVE

[LenaH]

Can you clarify the issue that you are having so that we may assist you further? 

@latefiler5