Passive loss carried over for schedule E from 2020

[kirilldny]

I am switching to TurboTax from TaxAct and I need to enter passive loss carried over for schedule E from 2020 for my rental property.

Specifically, TurboTax is asking me to enter 3 numbers:

Sch E - Regular Tax Carryovers
Sch E - Alt Min Tax Carryovers
Sch E - QBI Carryovers

I understand that the first number (Regular Tax Carryovers) I can get from 2020 form 8582 page 2 worksheet 5.

Where do I get the other 2 numbers from?

TaxAct produces just one form 8582, I do not have any additional forms for AMT even though I pay AMT.

Should I use the same number from form 8582 page 2 worksheet 5 for all 3 questions (Regular Tax/Alt Min Tax/QBI)? If not where specifically do I get numbers for Alt Min Tax and QBI?

[MaryK4]

For the AMT Carryovers, you would have to re-calculate your 8582 carryovers applying credit for any Form 6251 adjustments.  If you did not have AMT, you do not have to recalculate.

The QBI should be on a SCHEDULE C (Form 8995-A).  If you did not use your rental activity as QBI, you would not have carryovers.

[kirilldny]

Thank you, that was very helpful.

Just want to confirm.

- If I did not have AMT or did not have any AMT-specific adjustments then I should enter exactly the same carryover number for both Regular Tax and AMT, correct?

- I do have Form 8995-A in my return. For the purpose of that carryforward should I use number on line 40:

Total qualified REIT dividends and PTP (loss) carryforward. Combine lines 28 and 29. If zero or greater, enter -0
40

Or should I use some other line?

[MaryK4 · Accepted solution]

If you did not have AMT adjustment, you can use the same as your regular. (Just FYI- the AMT carryover loss would be bigger than normal if applied)

Yes for QBI Carryforward Line 40 on 8995-A.

@kirilldny

[TaxWhipper]

If 2020 TurboTax only created a Form 8995, then is the QBI carryforward amount to be used on line 16?

Or, is the QBI carryforward amount the amount on line 16 of Form 8995 plus the unallowed loss on Form 8582 worksheet 5?

If I used TurboTax for the 2020 return, how come TurboTax 2021 isn't automatically filling in the correct amount?

[TaxWhipper]

Also, when the amount from the 2020 Worksheet 5 for Form 8582 is used in the Schedule E "Carryovers to 2021 Smart Worksheet" for QBI, this amount PLUS the allowed passive loss for 2020 is shown on Line 2 of Schedule C for Form 8995-A. This amount is allocated in column 1(b) between the businesses listed in Line 1 based on their relative incomes.  Should the allowed loss from 2021 be included in the carryforward amount on Line 2 of Schedule C for Form 8995-A?

[TellMeAboutIt1]

Still not clear, where do I get these numbers? Sch E - Regular Tax Carryovers, Sch E - Alt Min Tax Carryovers, Sch E - QBI Carryovers

Is it one number in one of the boxes?    Is it Sch E - QBI Carryover if I took the QBI last year?  Instructions are VERY POOR for this.

I have a 8995 QBI  (not 8995-A) for 2020.

[RobertB4444]

@TellMeAboutIt1  If you don't have an 8995-A the QBI carryover is zero.

The other two numbers come from form 8582.