1) First make sure the entity isn't taxed as a general partnership for 2023. If it is, the O&G activity isn't passive because O&G working interests not held in a liability-limiting entity are statutorily non-passive. It's pretty common for the deal to be put together as a general partnership for the drilling year(s) and to flip to a limited partnership once the well pays out.

2) If you're expensing IDCs, enter the net negative $2,500 in the Ord Bus Inc (Loss) column of 20Z.

The people who wrote the QBI regs and forms instructions did not envision that anyone would have significant complex pass-through QBI activities, and the mechanical rules about netting losses against income are super weird.