My LLC Qualified business net loss carryforward from prior year, which I entered in TurboTax, does not show up o the 8995 form, although I entered the figure in "Net operating loss/QBI Carryforward Loss. Any thoughts, please?

[Gregory15]

My Qualified business net loss carryforward from the prior year does not show up in my 8995. In TurboTax 2022 I entered my single-member LLC qualified business loss carryforward from 2021 under “less common business situations” “net operating loss/QBI carryforward loss.” I entered the dollar figure of 2021 net operating loss amount in the 2022 return where it says “NOL carryover you previously entered from your 2021 return in the box,” specifically, “net operating loss carryover. I did not enter anything in the box “AMT net operating loss carryover.”

I found the figure I entered from my 2021 8995 lines 3 and 16 from the 2021 (prior year) return.

BTW the figure does appear on the 2022 1040, schedule 1, “Additional income and adjustments to income” line 8a “net operating loss.”

I’ve done this operation the past two years using TurboTax and there was no problem. I’ve searched the whole return in TurboTax “preview” mode, several times and can’t explain why the figure is not showing on this year’s return. There’s an empty bracket (       ) or zero where the carryforward should be. If I leave it this way, I assume I won’t be able to use the loss carryforward next year.

BTW I have checked that I’m active in the business, have no use of a home office deduction, and have not checked at risk income or similar boxes. I should add that this business had no income or expenses, basically, it has the loss carryover from the prior year.

Any help is much appreciated, thank you.

[JohnB5677 · Accepted solution]

Unfortunately, I think you posted it to the wrong place.  This is not a NOL, it is a carryforward of unused losses for the Qualified Business Deduction.

I'm not sure if you're using the Online or the CD/Desktop version, but I'll give you the Online version.

You started in the right place: 

1. Other business situations [Show More]
2. Net operating loss/QBI carryforward loss [Start/Revisit]
3. The first screen is for 2021 Net Operating Loss.
   1. This is not the screen to post the 8995 information to.
   2. Leave blank and click [Continue]
4. The next screen is 2021 Qualified Business Income Loss Carryover
   1. Enter the amount from line 16 of the 2021 8995.

You should not have an entry on Schedule 1, line 8a.

If this does not completely answer your question, please contact us again and provide some additional details.

[Gregory15 · Accepted solution]

Wow, John, you solved my issue! Dull me, stopping on NOL to enter the carryover loss vs. continuing as you instructed me here to QBI income loss carryover.  Simple, when dealing with an expert. 

FYI, as you said, there should be no entry on schedule 1, line 8a. It's now gone. But, hey, my refund is way down! Just kidding. I rather not have the wrong information on my return by mistake then have to give refunds back.

Additionally, John, per your solution, form 8995 now shows the carryover on line 3 and on line 16, as I was hoping it would with the correct solution. I'll carry that figure over to next year.

BTW, before your solution, on the TT "less common business situations" "Net operating loss/QBI carryforward" line, my loss carryover figure from 2021 appeared (as a negative number). Now there is a $0 there. Is that in you opinion okay? Sorry if I'm getting into the weeds here. If you're not sure, no problem.

Lastly, while I have your kind attention, after I left the figure blank in 2021 Net Operating Loss as you said, the next screen says "delete confirmation." "The following form(s) are about to be deleted. Are you sure you want to delete them?" "Explanation Stm" Choice of yes or no. I checked no to be safe. Is that okay or should I say no, or does it matter? The QBI loss carryover screen then follows after that question. And that's where I entered the figure from 2021 8995. 

[AliciaP1 · Accepted solution]

It is correct to delete the form since you do not actually have the NOL.

@Gregory15 

[Gregory15]

Well, thank you, Alicia, for your kind answer. It completes my query and with complete satisfaction. I must say it's cool to have folks as you and John helping us on these tax matters, in addition to the many other folks who do their best and contribute of their time to help us as well. Thanks again for your answer.