topic Help with Form 8995A and Loss Carryforward in Self employed

Help with Form 8995A and Loss Carryforward

DFS1 — Sun, 09 Mar 2025 02:28:14 GMT

Another question for the experts:

Sold a small retail business at the beginning of 2023, a schedule C proprietorship.

For the first time in 40 years, I had a CPA file my return in 2023 because of complications related the business sale.

I showed a small loss on the schedule C and CPA also included Form 8995-A which of course, showed no Qualified Business Income Deduction.

Related to that form, and included with the return was a form labeled “Schedule C (Form 8995-A) Loss Netting and Carryforward.”

The amount of the carryforward shows also as loss on Schedule 1, line 3 and is reflected in the Form 1040 so it would appear that the loss serves no further purpose.

I will again show a small loss on a Schedule C for 2024 related to refunds on my behalf given by the new owner and some ‘tidy-up” accounting services.

Question: Can I simply omit the three pages of Form 8995-A from 2024 return since we will again not qualify for Qualified Business Income Deduction, and the Carryforward, since this will be our final Schedule C, will again be redundant, having been included on Schedule 1 and on Form 1040?

Thank you !

Re: Help with Form 8995A and Loss Carryforward

PatriciaV — Mon, 10 Mar 2025 19:09:21 GMT

If you're e-filing, there is no need to remove any forms that TurboTax produces as part of that return. However, if you choose to file by mail and Form 8955-A is blank (no zeroes), you do not need to include that form with your mailed return. QBI is an elective deduction, so the form isn't required if you don't claim that credit.

Re: Help with Form 8995A and Loss Carryforward

DFS1 — Mon, 10 Mar 2025 20:28:36 GMT

Still have a bit of a question:

You mention that if Form 8995A is blank (no zeros) I don't need to include the form with the 2024 return. There is a loss carryforward on the 2023 return. Given the additional loss on Schedule C for 2024, am I "required" to add the loss to the carryforward from 2023 and file 8995A again for 2024?

I guess that my confusion stems from the fact that the Loss Netting and Carryforward page appears to be a part of 8995A, and only required if that form is filed. If that assumption is correct I can omit all three pages from the return for 2024 without the previous carryforward having any lingering impact?

Optimally, I would choose not to include the QBI Deduction (8995A) and the associated Loss Netting and Carryforward page and forget that they were included with the 2023 return.

Yes or no?

Thanks again!

Re: Help with Form 8995A and Loss Carryforward

PatriciaV — Tue, 11 Mar 2025 22:37:29 GMT

If you are eligible for QBI and may use the carryforward in a future year, you should include Form 8995A with your tax return each year. All pages for the form must be included if the form itself is a part of your return.

Again, QBI is an optional deduction. Form 8995A is used if our 2024 taxable income before your QBI deduction is more than $383,900 married filing jointly, and $191,950 for all other returns. You have the option to claim the deduction and report carryforwards or decline the deduction and omit the form.