Hide and Seek QBI

[Beersheba]

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??

[TAXNJ]

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

https://www.irs.gov/newsroom/tax-cut...deduction-faqs

[Beersheba]

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.

[TaxGuyBill]

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

https://www.irs.gov/pub/irs-pdf/i8995.pdf#page=7

[Beersheba]

Very complex, Bill. Thank you.