rbynaker
Level 14

The glitch is either that ProSeries didn't remove the carryovers when it transferred them to the 8995 OR that it didn't transfer them to the 8995 because the programming wasn't correct.

I would start by "following the bouncing ball" on the 2021 return.  The 2020 suspended losses on each activity may have pre-2018 losses (non-QBI) and post-2017 losses (QBI).  That's what the software should be tracking but double check it.  This was something of a moving target when it went into effect in 2018 so even if ProSeries has it programmed correctly now, I wouldn't assume it's always been tracked correctly.  Then 2021 activity gets stirred into the mix.  The 1231 gain "releases" these losses so the QBI losses can hit the 8995 where they might get stuck again if there are insufficient activities with QBI income.  It sounds like you're saying that all losses were released in 2021.  Is that what the 8995 shows?  They could still be carried over at the QBI level on 8995 Line 16 (or 17 if these are PTPs) so there might not be any impact on the overall tax return.  If you had to use the long form instead, there's an 8995-A Schedule C that will be your starting point.

Rick

 

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