QBI carryforward

[ppumgrad]

Thanks.  I use the online premium version, so no problem.  I look forward to the fix.  Thanks again.

[msinn]

I have a Qualified Business Income Deduction Carryforward from my 2020 taxes, which were done by a CPA (so not in TT). I'm doing my 2021 taxes in TT Premiere. I've looked through this tread but cannot figure out how to enter my 2020 QBI carryover. I understand there is a bug fix to be deployed April 8th, but I cannot even locate in TT where to place the carryover entry from 2020. Is that part of the bug fix or can I enter that now?

Thank you.

Matt

[ThomasM125]

In TurboTax online, you need to go to the Income and Expenses section, then Other Business Situations, then Net Operating Loss/QBI Carryforward Loss. @msinn

[msinn]

Thank you ThomasM125, but I am not using the online version. I'm using the desktop Premier version and there is not Income and Expenses section and I don't see the other parts of the path either (Other business situations).  Can you please tell me how to get there in the PC desktop Premier version? 

Thanks

Matt

[AliciaP1]

The information won't stay input until the fix is released.  After April 8 you can follow these steps In TurboTax Premier Desktop to get to the QBI carryforward information:

1. Within your tax return click on Federal Taxes and Wages & Income
2. Click I'll choose what I work on
3. Scroll down and click Update for the Business Deductions and Credits line
4. Click Start or Update for the Net Operating Loss line
5. Enter your 2020 operating loss carryover and Continue
6. Enter your 2020 QBI loss carryover and Continue

@msinn

[taxnewbienj]

Hi @AliciaP1,

Just to ensure I understand - on April 8, 2022 there will be an update for all versions of TurboTax 2021 to fix this QBI loss carryover problem?

I have TurboTax 2021 Premier Download version (mac), so just wanted to make sure that I'll be able to see my QBI loss from 2020 (per Schedule C) showing up automatically in the 2021 filing. Did I understand that correctly?

Thank you!

[ky1124]

Hi @AliciaP1 @ThomasM125 

What is the difference between a QBI carryforward and an NOL carryforward and which one should I use? My self-employed business income is negative and it qualifies as QBI but I believe also as NOL, not sure which one should be used.

[JamesG1]

You must carryforward a qualified business income loss carryforward into the subsequent year's qualified business income deduction calculation.  A Net Operating Loss carryforward is an election the taxpayer may make.

This IRS FAQ Q22 also explains

Any negative QBI carried into the subsequent tax year as a qualified business net loss carryforward will be used in that subsequent year to determine the net qualified business income or loss in that year.

If your deductions for the year are more than your income for the year, you may have an Net Operating Loss  that may be carried forward.

There are rules that limit what you can deduct when figuring an NOL. In general, the following items are not allowed when figuring an NOL.

• Capital losses in excess of capital gains.
• The section 1202 exclusion of the gain from the sale or exchange of qualified small business stock.
• Nonbusiness deductions in excess of nonbusiness income.
• The NOL deduction.
• The section 199A deduction for qualified business income.

See also this.

@ky1124

[ppumgrad]

The bug was NOT fixed, at least not in the online version.  Now it populates any QBI carryover loss that occurred in 2020, but doesn't populate any loss that occurred in 2019.  So if you don't correct it, it will assume it occurred in 2018.  Since I doubt it will be fixed before taxes are due, I manually updated the numbers to what I think is correct.  Oh, and by the way, I had to clear my 2021 return and start from scratch, even the 2020 QBI carryover didn't populate since I had already gone through editing my K-1's, and I know from past experience you can't just delete K-1's and start over, since then you lose all carryover info if you do that.

[TJShannon2u]

I have QBI loss carryover when I went to enter this it showed as a negative, ex. -592 is this supposed to be changed in turbox tax to positive 592?  I have another return doing for son and he has a loss too from 2020 how is it entered they way it populated as negative or change to positve? thanks 

[ThomasM125]

You should enter the QBI loss carryforward as a positive number. It will show on form 8995 Qualified Business Income Deduction Simplified Computation in line 3 as a negative number.

[build2345]

deleted

[KrisD15]

To clarify, are you entering Qualified Business Income? 

What form are you using to report that type of income? 

[build2345]

gdhjhet

[KrisD15]

You don't necessarily need to upgrade, but what are you using to report your Business income?  

Do you get a Schedule K-1?