Turbo Tax Business LLC | Qualified Business Income and Carryovers

[watergirl2]

Hello 

I am doing my business taxes now. Last year I had no income and reported a 10K loss.
This year I see a flow for Qualified Business Income. There is a form in there with fields to add Carryover amounts.

I have explained this flow is just for my information and will not impact the filing. But I am curious if this carryover can help me reduce income taxes next year if I have more income? 

Can I carry over losses for a few years to then reduce income or increase income deductions when I make profits?

Thanks

[JeffreyR77]

Yes, your LLC is a pass-through entity.  At the end of the year, all income and expenses are allocated to the LLC members per the LLC agreement and 'pass-through' to you personal income tax return.  Carryover items can be applied in future periods to offset income in those periods - again, income and expenses in those years will be allocated to the LLC members at the end of the year.

[watergirl2]

Thank you

Do I need to fill out the Qualified Business Income and Carryovers worksheet in order to carry over the losses or is this an accounting number I keep on my records. 

The Turbotax flow has a "worksheet"  where I can enter amounts qualified for carryovers including last year. I have small losses both years 2019 that was reported in my 2019 return and personal taxes in the k1's. 

I am not sure if I add the full amount or just a qualified % or of I can just leave blank. The return and the k1s will reflect the 2020 loss

Thanks

[AmyC]

Add the full amount. You want to continue to carryover those losses.

[watergirl2]

Thank you for your help

In the form, I am not allowed to enter a negative amount. Can I safely assume I should enter the total amount to carry over as a positive number?

In the K1 printouts, I see the 2020 Ordinary Business Income (loss)  and the amount -$4000 (negative number)
Then, down below, I see section 179 Deduction and the amount $5000 (positive number) 

$-5000 was the amount I reported as a loss last year on my 2019 return 

I would like to extra double-check that this section 170 deduction is done correctly and it is needed for my case. My expenses are not for rentals or equipment

Thanks  

[JeffreyR77]

It would be inconsistent that your LLC would have Section 179 deductions and post the loss you have.  Also, Section 179 deductions are only used as accelerated depreciation on equipment.