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Hide and Seek QBI

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    Hide and Seek QBI

    Assume Facts as follows:
    1. Taxpayer owns Rental Property which qualified as a QBI business.
    2. Rental Property incurs a loss, which carries the QBI calculation into the negative, to apply to future years.
    3. The loss, however, is not deductible because taxpayer's income exceeds $300,000. Classic 8582 situation.
    The question: Should the negative QBI be allowed to apply to future years (see 2. above), even though taxpayer never got the benefit of the loss??

    #2
    See below FAQ. (See Q22; 23 and others related to your scenario)

    https://www.irs.gov/newsroom/tax-cut...deduction-faqs
    Last edited by TAXNJ; 03-10-2022, 07:24 AM.
    Always cite your source for support to defend your opinion

    Comment


      #3
      Thanks NJ, but the links to reading material presented Q&A which didn't apply to the situation.

      The answer to the question, as presented, might be simple as a "Yes or No", but either response might bring forth some reasoning or a cite.

      Comment


        #4
        It depends on the year of the loss. See pages 7-9 of the Instructions for Form 8995.

        Comment


          #5
          Very complex, Bill. Thank you.

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