Loss Carryover from Business

Forum|Forum|2 years ago
August 11, 2023
2 replies
29 views

TP has a Loss Carryover of 20K from previous years. 2020 and 2021. Loss was from an S-Corp and Capital Losses. (10K each)

The only income for 2022 was W2 income.

The carryover worksheet shows Qualified business loss carryforward of 20K. I thought the system would give a 3K loss deduction in 2022 against the W2 income.

Am I thinking incorrectly?

Thanks in advance!

ProSeries Professional

This topic has been closed for replies.

sjrcpa

Level 15

Qualified business loss is for the 199A deduction only.

The capital loss carryover should be used, $3,000 worth. Check how you entered it.

EDIT: Or are you saying that both the ordinary and capital loss are Qualified Business loss carryovers?

The more I know the more I don’t know.

Y

yeknodAuthor

Level 5

Actually it shows Sections 1231 Losses not Capital losses. Can those be used for the 3k loss deductions?

sjrcpa

Level 15

If it's all Qualified Business Loss carryovers, all they will do is reduce Qualified Business Income (for the 199A QBI deduction) when and if client has some.

The more I know the more I don’t know.

T

TaxGuyBill

Level 15

You probably want to figure out exactly what you are looking at.

Are these "losses" listed on Form 8995? If so, they aren't really carryover losses. It is just carryover information that will affect future QBI deductions. The actual loss should have already been taken - you can check the prior year returns to verify that the actual loss has already been taken.

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