Qualified Business Loss Carryforward for New Client

[PennsylvaniaGreg]

I have a new client this year who is Schedule C LLC business.  He has a Qualified Business Loss carryforward.  Where does that get entered to bring my Tax Files Up to Date?

[George4Tacks]

Sch C > Upper Right - find Less Common Scenarios > Scroll down to QBI > For the years 2018 forward there are several entries to review and make entries for, including a "State, if different"

[PennsylvaniaGreg]

George - Thanks.  When I populate those years it wants  a positive number which makes sense given it is a loss section.  Howver, form 8995 Line 2 does not seem to reflecting the previous losses.  Should it?

[itonewbie]

What George suggested is for losses that were limited by PAL.  That's why those entries are on the tab for "Less Common Scenarios".  Those are also entered by years because these are subject to ordering rules under the regs.  You will find similar entries under Sch E and K-1 for negative QBI suspended by the type of limitation (e.g. basis, at risk, and PAL).

For suspended Total Qualified Business Loss, which is shown on F.8995, Line 16, you should enter that under Income > Net Operating Loss > Federal Net Operating Loss.  The input field is not on the main screen.  You need to then click on Cur. Yr NOL / Misc. in the top-right corner, scroll down to the Qualified Business Loss Carryovers section, and enter the amount on the line for Qualified business loss carryover.

To check the computations for QBI from the various ToB's and how suspended negative QBI limited by the various levels of limitation are ratably allowed, if applicable, you can refer to the Worksheets.  You will also find QBI-related carryovers to 2023 itemized on General Info.

[Edited: To clarify Carryovers are on General Info. instead]