Question

Business income deduction

Forum|Forum|3 years ago
April 15, 2023
1 reply
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Confused. TT is allowing me to deduct my business loss on Schedule 1. Then on Form 8995, TT shows the current loss as a loss carryforward. Isn't this a duplicate deduction???

AliciaP1

No, Form 8995 is used to determine your allowable Qualified Business Income deduction. Since you have a business loss for 2022, the loss will be carried forward until you have positive QBI again, the loss will be deducted from that before the current year QBI deduction is calculated.

See What is the Qualified Business Income (QBI) deduction? for more information.

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