Je9
Level 3
10-05-2024
04:12 PM
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sorry for a follow up but I still don't think this is working correctly. In my example above, the taxpayer has a $2,500 passive loss that is NOT allowed for 2023 but will need to carry forward. When I enter the ($2,500) onto 20Z under ordinary bus inc/(loss) it is still flowing through to form 8995A and decreasing the QBI income for the year (client has positive from another business). I thought that if the passive loss was disallowed, it didn't affect QBI for the current year but would be carried forward to a future year, when the passive loss was actually recognized. Is that not correct?
If it is correct, is there some checkbox I need to check to have it carry forward instead of deducting?