ProConnect Tax will automatically calculate and carryforward any unallowed QBI amounts to the following year, however, if you are entering a new return you may need to enter the carryover from the prior year.
Where you enter this depends on if it is a passive QBI carryover or if has already been allowed by the 8582:
For QBI loss carryovers that are still limited by passive activity limitations:
- Open the business activity screen that is associated with the QBI Loss:
- For Partnership K-1s: From the Input Return tab, go to Income ⮕ Passthrough K-1's ⮕ Partnership Info then click on the QBI tab along the top of the screen.
- For S-Corporation K-1s: From the Input Return tab, go to Income ⮕ Passthrough K-1's ⮕ S-Corp Info then click on the QBI tab along the top of the screen.
- For Estate and Trust K-1s: From the Input Return tab, go to Income ⮕ Passthrough K-1's ⮕ Estate or Trust Info then click on the Passive Carryovers tab along the top of the screen.
- For Rental and Royalty Income: From the Input Return tab, go to Income ⮕ Rental and Royalty Income, then click on the Passive Losses tab along the top of the screen.
- For Farm Income: From the Input Return tab, go to Income ⮕ Farm Income, then click on the Passive Losses tab along the top of the screen.
- Below, you will find either:
- The section Prior Unallowed Qualified Business Income Deductions for Partnership and S-Corporation K-1s.
- The section Prior Year Unallowed Passive Losses for Estate and Trust K-1s, Rental and Royalty Income, and Farm Income.
- Enter the carryover amounts in the correct field:
- For Partnership K-1s: 2022 QBI operating
- For S-Corporation K-1s: 2022 QBI operating
- For Estate and Trust K-1s: 2022 QBI unallowed passive loss
- For Rental and Royalty Income: 2022 QBI Operating
- For Farm Income: 2022 QBI Operating
For non-passive QBI carryovers and QBI losses that are no longer limited by passive activity limitation:
- From the Input Return tab, go to Income ⮕ Net Operating Loss ⮕ Federal Net Operating Loss.
- Select the Cur. Yr NOL/Misc. button in the top right corner of the screen.
- Scroll down to find the Qualified Business Loss Carryovers section.
- Enter the carryover amounts in Qualified business loss carryover.
