Christian Posted April 17 Report Share Posted April 17 A new client came in who has a small side business he operates. On his Form 8995 on line 16 he shows a small loss which can be carried forward according to the wording on the line. All of the clients I have with small side businesses rarely if ever post a loss. This client will post a profit for last year and in looking on Schedule C I find no line entry to post a retained loss from Form 8995. I assume I can simply place it among other expenses ? Quote Link to comment Share on other sites More sharing options...
mcb39 Posted April 18 Report Share Posted April 18 No, generally it is carried over on the NOL worksheet from the prior year. At the moment, I can't tell you exactly where it ends up on the Sch C. Quote Link to comment Share on other sites More sharing options...
kathyc2 Posted April 18 Report Share Posted April 18 The loss on 8995 is NOT a deduction for FIT. It is strictly used to calculate QBI deduction. Any profit this year would need to be reduced by the 8995 loss before calculating any 199A deduction. 6 Quote Link to comment Share on other sites More sharing options...
Christian Posted April 18 Author Report Share Posted April 18 I have strained the muscles in the back of my neck. Of course, the loss was simply subtracted from other income on the 1040. This shortened tax season of eleven weeks as opposed to the former thirteen has been a strain and will oblige me to again reduce my client list again next season. Quote Link to comment Share on other sites More sharing options...
Slippery Pencil Posted April 18 Report Share Posted April 18 The loss on the 2022 F8995 line 16 gets carried forward to Line 3 on the 2023 F8995. The loss on line 16 of the 2023 F8995 gets carried forward to the 2024 F8995. 4 Quote Link to comment Share on other sites More sharing options...
Corduroy Frog Posted April 18 Report Share Posted April 18 The benefit of the QBI is elusive indeed. At first glance, it sounds really great - a 20% reduction of profits available in addition to standard/itemized deductions. However, it has hoops to jump through. First of all, if there is EVER a loss, the loss must be applied IN FULL to the current benefit. However, if a positive result is ever squelched for any reason, the amount lost is NOT carried forward. Next, the 20% is applied to the taxable profit, or taxable income, WHICHEVER IS LESS. If any benefit is lost thereupon, it is lost forever. The 20% is a great thing for taxpayers with regular profits, and regular taxable incomes. 2 Quote Link to comment Share on other sites More sharing options...
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