Hi Everyone,

I'm trying to better understand how a "QBI Loss Carryforward" that shows up on form 8995 from the prior year impacts current year taxable income. Please assume the following.

QBI Loss Carryforward from 2022: ($42K)

2023 Net Income from K-1: $58K

I entered the carryforward loss into Income > Net Operating Loss > Federal Net Operating Loss > Qualified Business Loss Carryover.

By doing this it actually lowers the QBI deduction the client is able to take. As the loss only shows up on one form (8995, line 3). Am I wrong in expecting this loss to be applied against the 2023 Net Income on the K-1 somewhere else on the return? Lowering their business income to $16K?

Thanks in advance!