QBI carryforward

[muco39]

How do I enter the figure for the previous year QBI carryforward amounts in 2020 tax return? I use schedule C to calculate my profit (loss) both for 2020 and 2019.

[RayW7]

The NOL and QBI carryforward loss section is at Income>>Less Common Business Situations>>Net Operating Loss/QBI Carryforward Loss.

Losses generated in 2018 or after that are subject to the basis, at-risk, or passive activity loss rules reduce QBI when the losses reduce taxable income. These losses carry over for QBI purposes until reducing taxable income.

If a screen doesn't "present" when it is supposed to, try signing out and signing back in, and/or clearing your "cookies and cache".

-for more information on QBI follow this link-

Qualified Business Income Deduction | Internal Revenue ... - IRS

[muco39]

Thank you Ray, but probably because of the version of Turbotax I am using that link is not correct for me.  I am using online Turbotax self-employed.

There is a button for uncommon situations in my version too.  However, the only link that may apply to me is at-risk losses carrying over.  If I use that option the result ends up in expenses section part V.  Nothing is showing in QBI deduction sheet 8995 line 3. Can you answer more specific to my version?

Thank you.

[JamesG1]

QBI passive carry-forward is the amount of the Qualified Business Income Deduction that is is not allowed due to the passive income rules. 

In TurboTax Online Self-Employed, follow these steps.

• Down the left side of the screen, click on Federal.
• Across the top of the screen, click on Income & expenses.
• Scroll down to Other Business Situations.
• Click Start / Revisit to the right of Net Operating Loss / QBI Carryforward Loss.
• Enter QBI Carryovers at the screen 2019 Qualified Business Income Loss Carryovers.

[muco39]

James,

There is no such button in "other tax situations".  I did find a button called "carryovers..." in uncommon situations in income and expenses section. That led me to a page where there is a  place for QBI entry.  However, it is not clear what I need to enter on that page as more than one entry is expected and it is not clearly stated what those are supposed to be.

Thanks for anybody who replied to my question.

Mubetcel

[DaveF1006]

It depends. What this page does is asking you to report if you have 2019 Carryover losses to be reported in 2020, it gives you two choices.

1. if you had a regular QBI loss to be carried over from 2019.
2. The second entry asks if you had a publicly partnership loss carryforward. This second choice would have resulted from a K-1 you received in 2019 from a publicly traded partnership.
3. If you don't remember this specifically, then your 2019 carryforward loss may be be the first choice.
4. You might check your 2019 return for more specific clues.

[Edited 03-29-2021|12:17 PM PST]

[muco39]

Thank you, Dave.

I have QBI carryforward losses from 2019.  If I enter only those on that page I get an error in the review saying I have to have regular losses.  Whatever I enter in the regular carryforward shows up as "expense" in the business sch C. I only need the loss from 2019 to show up in form 8995 so that I have the number to carry forward to 2021. How do I only populate line 3 on form 8995?

[sra63]

Did you ever find a solution to this? I am having this problem for our 2021 returns and cannot find an answer.

[AliciaP1]

To enter your QBI loss carryforward in TurboTax Online you can follow these steps:

1. Within your Federal return, click Income & Expenses at the top of the screen
2. Scroll down to Other Business Situations and click Show more
3. Click Start on the Net Operating Loss/QBI Carryforward Loss line
4. Click Continue on the Net Operating Loss screen
5. Enter your QBI Loss Carryforward as a positive number

[ppumgrad]

I am struggling with this too for my 2021 taxes.  I have two business rental LLC investments, so I get two K-1's.  I first started using TT online Premier in 2019, when I had a large loss ($29,640) in Box 3 on one of the K-1's.  Since I also had a small gain in Box 2 ($4,859), I had to enter two K-1's into TT.   Both K-1's were for the partnership (same EIN), there was no pass-through on that one.  For the other LLC, I also had to enter two K-1's since there was a small gain ($5,370) in Box 2 and a small loss ($323) in Box 3.  Also, since that K-1 included a pass-through entity in addition to the partnership, I was able to split it along those lines.  But my overall QBI for 2019 was negative (-22,605) as reflected on Form 8995.  My Passive Activity Loss carryover (Unallowed Losses), as reflected on Form 8582, was $19,734.  In 2020, again I received two K-1's.  The first one this time had a loss in Box 2 ($1,135) and nothing in Box 3.  I had learned that to have TT properly carryforward passive losses you must continue to enter multiple K-1's, so I did and entered $0 in the second K-1 for Box 3.  The second K-1 only had the small gain ($5,485) in Box 2, but again since I had started entering two K-1's, and since there was also a passthrough entity, I again entered two K-1's.  It never asked me anything about QBI for previous years while entering the K-1's.  It properly carried forward the -22,605 QBI from 2019 on Form 8995 and the Passive Losses of $19,734 on Form 8582.  The result was another overall negative QBI (-17,265) on Form 8995 and Passive Activity Loss carryover ($15,384)  on Form 8582.  Now, for 2021, while entering the K-1's into TT, all of a sudden it's asking for ME to enter the QBI Carryovers on the K-1's that have Passive Loss carryover, which is three of the K-1's, and then to split them up into the years they occurred, FOR BOTH Regular Tax and QBI.  I have no idea what that means or how to do that.  I do see QBI (Section 199A) Losses by Year Smart Worksheets at the bottom of my 2020 1040 prepared by TT, but of course it is missing one for the K-1 that had the big loss in 2019.  And furthermore, the Smart Worksheets for the other two K-1's that had passive loss carryover just have the same amount in the QBI column and the Regular Tax column, which contradicts the different numbers between the Form 8995 and Form 8582.  So at this point I don't know what to enter in the QBI Carryover screens for my K-1's.  Should I try to make them match what was on the Form 8995 from 2019 and 2020, including entering the negative AND positive QBI's, so the overall QBI will be correct?  Or should I just enter what's on the QBI (Section 199A) Losses by Year Smart Worksheets at the bottom of my 2020 1040, and take an educated guess at the numbers for the missing K-1?  Any help would be appreciated.  

[AliciaP1]

There is a known issue with the QBI Carryforward entries that posts all QBI losses to 2018.  I will post here as soon as there is an update.

When TurboTax is updated, the carryforward information should populate correctly.  You should see the QBI loss under that section and the Passive Losses under the Regular Tax section.  The QBI Loss will be entered as $-22,605 for 2019 and $5,340 for 2020.  The Passive Loss will be entered as $-19,734 for 2019 and $4,350 for 2020.  

@ppumgrad

[ppumgrad]

Thanks AliciaP1.  I knew something didn't make sense.  Since I've already edited my K-1's from last year with this year's numbers and let them populate the bad numbers from TT, will I have to wipe out what I've done so far on my 2021 return and start all over once the bug is fixed?

[PatriciaV]

It depends. Wait until the update is released and applied, Then review your K-1 information. You may not need to revise any entries you've already made. Or you may need to delete the K-1s and re-enter the information. But you won't know until the update is applied.

[TaxTurist]

@DaveF1006 

My 2020 schedule C From 8995 line 3 and line 6 show QBI net loss carryforward of ~$8000. In Turbotax (Home and Business), under the section "Let's get your at risk carryovers"  I have 2 options to record it on the left  "At-risk loss carryover" from schedule c and on the right "QBI at-risk loss carryovers"

Where do I record my loss from previous years on the right or the left?

Why does TurboTax call it carryovers when the IRS refers to it as carryforwards?

Thanks,

Robin

[AliciaP1]

There will be an update to TurboTax on April 8, 2022, that will resolve this issue.  If you are using one of the desktop versions you will need to install updates before you proceed.

@ppumgrad