I am working on an individual tax return. In calculating Qualified Business Income for an S-corporation in my worksheets I have 3 lines. Business Income XXX comes from the QBI page of the K-1, then Loss disallowed due to basis, at-risk or passive rules (this is a positive add back), third line if Charitable Contributions not included in taxable income (this is a positive add back). These three figures equal the amount going to Line 1c on the Form 8995. I have looked and calculated every number combination I can come up with. I have spent hours on the phone with Lacerte over the past 5 days. I can not determine how the Loss disallowed due to basis, at-risk or passive rules is calculated to get this add back. Lacerte can not provide any details for formulas for the calculation either. Anyone else run into this issue with a client or do you know what does into this calculation?
I do have all of the 2018 basis limitation carryover information input into the system. There are figures for ordinary loss, sec 179 and contributions. However, even using these carryover items, for 2018 and the carryover items going to 2020, I can not come up with the figures being calculated by the system.
You have the 2018 QBI loss carryforward entered into the section called Prior Unallowed Qualified Business Income Deductions, along with the 2018-specific passive carryovers in that same section?
Edit: It might be helpful to attach some redacted screenshots of your Screen 20.1 input and your 8995 pages.
In the S-Corp there is QBI Sec. 179 carryover number. This is included as part of the calculation of QBI Business Income on page 3 of the individual K-1s. Then, not related to the QBI Sec. 179 carryover numbers on the individual side there are carryover items for ordinary loss, sec. 179 and donations due to basis limitation.