QBI 8995 Rental PAL and QBI loss carryovers

[ben530]

Hello friendly Lacerte community!

I'm not sure I follow what Lacerte is currently doing in the 2021 program for this basic rental activity that is a QBI activity with a 2020 PAL carryover that is now fully allowed in 2021.

The 8995 line 3 is not including the loss carryforward from the prior year. It shows it on the line 3 worksheet as 2020 total losses and QBI losses but nothing is going to line 3 even though the PAL is clearly fully allowed. I must be missing something obvious! Maybe there is a new input or maybe an alert i missed in the pro-forma process? It does seem there is a new QBI loss carryforward tracking mechanism in Lacerte.

Anyone able to recreate this strange result? For example: all screen 18: Schedule E $30,000 rents, business is a qualified trade or business marked "1", Prior Year Unallowed Passive loses operating $10,000, QBI section: 2020 total $10,000, 2020 QBI total $10,000. No other QBI income or activities. In the 2020 program, total rental income and QBI are both $25,000. In 2021, Lacerte is giving me $25,000 total rental income but $35,000 QBI and lists a QBI unallowed passive losses under general info. I can override the result on Line 3 using qualified business loss carryover input in the NOL section screen 15, but I don't think that is right for QBI losses still limited by PAL limitations, and even if I do the QBI unallowed PAL carryover remains in the carryovers to 2022.

Much thanks for any insight. -Ben