Form 8995 lCarryforward Question

Forum|Forum|1 year ago
February 7, 2025
1 reply
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Hello,

I have a (10,819) carryforward amount in Line 16 of my 2023 taxes. Can use this negative amount to offset my 2024 QBI tax?

Please advise

MAK70

The Qualified Business Income (QBI) is not a tax it is a deduction. When you have a profit, the deduction reduces the taxable income. If you have a loss, you cannot claim the QBI deduction until you absorb all the losses. See Qualified Business Income Deduction.

fsolares61Author

thank you for your answer. I had a 10K loss in 2023, and in 2024, I profited from my rental property. (7K) Where in Turbo Tax will I enter the Carryforward 10K, and if I understood correctly, this carryforward amount will increase my deduction?

DianeW777

You Qualified Business Income Deduction (QBI) carryforward loss must be confirmed and/or entered each year until used up.

Open your TurboTax Online or TurboTax Desktop return

TurboTax Online: Click on Tax Home (left panel) > Select Income or work on other income > Edit beside your Business
Scroll to Business Summary > Click on Qualified Business Income > Continue to follow the prompts and answer the questions.
TurboTax Desktop: Select the Business tab > Continue to Business Income >
Scroll down to Less Common Business Situations > Select Net Operating Loss/QBI Carryforward Loss >
Continue to follow the prompts and answer the questions.