How to enter QBI carryovers in ProConnect Tax

Want to learn more about QBI Deductions with Multiple Entities?

You can watch our webinar on How to plan for Multiple Business Entity Impacts on the Qualified Business Income Deduction. See here to view the recording.

ProConnect Tax will automatically calculate and carryforward any unallowed QBI amounts to the following year, however, if you are entering a new return you may need to enter the carryover from the prior year.

Where you enter this depends on if it is a passive QBI carryover or if has already been allowed by the 8582:

For QBI loss carryovers that are still limited by passive activity limitations: 

1. Open the business activity screen that is associated with the QBI Loss:
   • For Partnership K-1s: From the Input Return tab, go to Income ⮕ Passthrough K-1's ⮕ Partnership Info then click on the QBI tab along the top of the screen.
   • For S-Corporation K-1s: From the Input Return tab, go to Income ⮕ Passthrough K-1's ⮕ S-Corp Info then click on the QBI tab along the top of the screen.
   • For Estate and Trust K-1s: From the Input Return tab, go to Income ⮕ Passthrough K-1's ⮕ Estate or Trust Info then click on the Passive Carryovers tab along the top of the screen.
   • For Rental and Royalty Income: From the Input Return tab, go to Income ⮕ Rental and Royalty Income, then click on the Passive Losses tab along the top of the screen.
   • For Farm Income: From the Input Return tab, go to Income ⮕ Farm Income, then click on the Passive Losses tab along the top of the screen.
2. Below, you will find either:
   • The section Prior Unallowed Qualified Business Income Deductions for Partnership and S-Corporation K-1s.
   • The section Prior Year Unallowed Passive Losses for Estate and Trust K-1s, Rental and Royalty Income, and Farm Income.
3. Enter the carryover amounts in the correct field:
   • For Partnership K-1s: ​2022​ QBI operating
   • For S-Corporation K-1s: 2022 QBI operating
   • For Estate and Trust K-1s: 2022 QBI unallowed passive loss
   • For Rental and Royalty Income: 2022 QBI Operating
   • For Farm Income: 2022 QBI Operating

For non-passive QBI carryovers and QBI losses that are no longer limited by passive activity limitation:

1. From the Input Return tab, go to Income ⮕ Net Operating Loss ⮕ Federal Net Operating Loss.
2. Select the Cur. Yr NOL/Misc. button in the top right corner of the screen.
3. Scroll down to find the Qualified Business Loss Carryovers section.
4. Enter the carryover amounts in Qualified business loss carryover.

Related topics

• Entering QBI carryovers in the Individual return in Lacerte