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robertmestayer
New Member

What is QBI Passive carryforward

 
2 Replies
WKins2
Expert Alumni

What is QBI Passive carryforward

QBI passive carry-forward is the amount of the Qualified Business Income Deduction that is is not allowed due to the passive income rules. The rules related to calculating the Qualified Business Income Deduction were recently changed and the IRS is still working on approving the form for filing. 

 

If you have business income which requires the filing of Form 8995-A, even if the calculated Qualified Business Income Deduction is zero, you must wait until the IRS has approved that form for filing.

 

Form 8995-A, the form used to calculate the Qualified Business Income Deduction, has not yet been approved for filing by the IRS. The expected date this will be approved by the IRS is 2/5/2020.

 

The state and federal governments approve the most common forms first and work their way down the list. Please see the links below for updates on form availability.  Once released, Turbo Tax will work quickly to get it working in the program. Form 8995-A is near the bottom of the federal list. 

 

Federal form availability

State form availability

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trusttaxes123xyz
Returning Member

What is QBI Passive carryforward

How is the carryforward computed? I'm using intuit software and on the 8995-A summary form it says I have 1,755 to carry forward to the 2020 (in the deductions tab for filing 2020 tax return)   How is the 1755 derived? the only QBI that the program calculated for 2019 is $113 on QBI  amount of 687 (the 20% amt of 137 was decreased due to higher w-2 salary).I did have rental income of 4875 for one rental and a loss of 2594 for another, but I am not sure how the program computed $1,755 carryforward. If you can help me understand where the $1,755 came from I'd be very grateful. Thanks in advance. valerie

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