QBI loss carryover not rolling forward to 2022

[mary ann]

2020 final K-1 had QBI loss which shows as carryforward from 2020 in 2021 carryover worksheet.  There is no business activity on 2021 return and no K-1 worksheet for the final K-1 in 2020.  The QBI loss carryforward does not show on the carryover worksheet from 2021 to 2022.  It would flow from Form 8995 or 8995A but those forms didn't populate.

Shouldn't that QBI loss carryforward to 2022?  Does it need to reported anywhere on 2021 return?  I can override on the carryover worksheet but wondering if I'm missing something?

[Just-Lisa-Now-]

Check the federal carryover worksheet, Line 29. If its missing you can enter it there.

[mary ann]

The system won't allow you to enter a negative value on line 29.  But line 29 flows from Qualified Business Income Deduction Summary line 8.  I can override that line with the negative and it then shows on line 29.  I don't like to override, but don't know of another solution right now.

[Just-Lisa-Now-]

Line 29 is for a loss carryforward, you enter it as a positive in the 2020 box.

[mary ann]

That sounds reasonable, but the 2020 box shows a negative that transferred from the prior year.  2020 also allows a negative to be entered.  The 2021 box doesn't, maybe since it should flow from the other worksheet?

[Just-Lisa-Now-]

When I put a positive number in the 2020 column in Line 29 of the Carryover worksheet, it carries it as a negative onto Line 3 of the 8995...isnt that what you want?

[mary ann]

When I do that, nothing populates in form 8995.  Maybe because there are no business activities in the return? 

Do you agree that this prior year QBI loss should carryforward indefinitely until offsetting other QBI income?  The activity generating the QBI loss ended in 2020.  It's unlikely that the client will have other QBI businesses in the future.  But I want to carryforward the QBI loss if required.

I do appreciate your input especially during this very busy time.