All of the following statements are true with regard to qualifying business losses EXCEPT: * The...

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All of the following statements are true with regard to qualifying business losses EXCEPT: * The...

All of the following statements are true with regard to qualifying business losses EXCEPT:

*

The loss will reduce any other current-year qualified business income of the taxpayer.

After reducing all current-year qualifying business income, any remaining loss will be carried forward to the following tax year.

Qualifying losses from 2017 were carried forward to the taxpayer's 2018 tax return.

Qualifying losses from 2018 are the first year losses to be carried forward to the following tax year

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Answer 1

Answer #1

The loss will reduce any other current-year qualified business income of the taxpayer.	TRUE	A taxpayer must net their QBI, including losses, from multiple trades or businesses
After reducing all current-year qualifying business income, any remaining loss will be carried forward to the following tax year.	TRUE	any negative amount is carried forward to the next taxable year.
Qualifying losses from 2017 were carried forward to the taxpayer's 2018 tax return.	FALSE	The carried forward negative QBI will be treated as negative QBI in the QBI Component in the next taxable year.
Qualifying losses from 2018 are the first year losses to be carried forward to the following tax year	TRUE	If the loss was generated after 2018, it is included in QBI if it is a qualified item of deduction or loss that would otherwise be included in QBI, but not until the year it is included/allowed in taxable income.

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Answer 2

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