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Department of the Treasury
Internal Revenue Service
2023

Instructions for Form 8995-A

Deduction for Qualified Business Income

Section references are to the Internal Revenue Code unless Estates and trusts. To the extent that a grantor or another person
otherwise noted. is treated as owning all or part of a trust or estate, the owner will
compute its QBI deduction for the portion of the trust owned as if
Future Developments section 199A items had been received directly by the owner.
For the latest information about developments related to Form Generally, in the case of a non-grantor trust or estate, the trust or
8995-A and its instructions, such as legislation enacted after they estate may either claim the QBI deduction or provide information to
were published, go to IRS.gov/Form8995A. their beneficiaries. In determining the QBI deduction or the
information that must be provided to beneficiaries, the estate or trust
allocates section 199A items based on the relative proportion of the
General Instructions estate's or trust's distributable net income (DNI) for the tax year
distributed (or required to be distributed) to the beneficiary or
Purpose of Form retained by the estate or trust. If the estate or trust has no DNI for the
Use Form 8995-A to figure your qualified business income (QBI) tax year, section 199A items are allocated entirely to the estate or
deduction. Include the following schedules (their specific instructions trust.
are shown later), as appropriate: Estates and trusts may compute their own QBI deduction to the
• Schedule A (Form 8995-A), Specified Service Trades or extent section 199A items are allocated to the estate or trust.
Businesses However, section 199A items allocated to beneficiaries aren’t
• Schedule B (Form 8995-A), Aggregation of Business Operations includible in the estate’s or trust’s QBI deduction computation. See
• Schedule C (Form 8995-A), Loss Netting and Carryforward the Instructions for Form 1041, U.S. Income Tax Return for Estates
• Schedule D (Form 8995-A), Special Rules for Patrons of and Trusts.
Agricultural or Horticultural Cooperatives
Electing Small Business Trusts (ESBT). An ESBT is required to
In general, the amount of your QBI deduction equals your QBI compute the QBI deduction separately for the S and non-S portions
component plus your qualified real estate investment trust (REIT) of the trust. If applicable, the Form 8995-A used to compute the S
and qualified publicly traded partnership (PTP) component portion’s QBI deduction must be attached as a PDF to the ESBT Tax
(REIT/PTP component). However, the deduction is limited to the Worksheet filed with Form 1041, and the trust must indicate that the
lesser of this amount or 20% of your taxable income, calculated information is applicable to the S portion only, by writing “ESBT” in
before the QBI deduction, minus your net capital gain (increased by the top margin of the Form 8995-A. See the Instructions for Form
any qualified dividends). Depending on your taxable income, your 1041.
QBI component may also be limited based on the type of trade or
business, W-2 wages paid by that business, and Unadjusted Basis Determining Your QBI Deduction
Immediately after Acquisition (UBIA) of qualified property held by the Determine your QBI component. To figure your QBI deduction,
business. you must first determine your QBI component. Your QBI component
is generally 20% of your QBI from your domestic trades or
Who Can Take the Deduction businesses. However, if your taxable income (before the QBI
Individuals and eligible estates and trusts use Form 8995-A to figure deduction) exceeds the threshold ($364,200 if married filing jointly,
the QBI deduction if: and $182,100 for all other returns), your QBI for each of your trades
• You have QBI, qualified REIT dividends, or qualified PTP income or businesses may be partially or fully reduced to the greater of 50%
or loss; and of W-2 wages paid by the qualified trade or business, or 25% of W-2
• Your 2023 taxable income before your QBI deduction is more than wages plus 2.5% of the UBIA of qualified property from the qualified
$364,200 married filing jointly, and $182,100 for all other returns; or trade or business. The partial or full reduction to QBI is determined
• You’re a patron in a specified agricultural or horticultural by your taxable income. If your taxable income (before the QBI
cooperative. deduction) is:
• At or below the threshold, you don’t need to reduce your QBI;
Otherwise, use Form 8995, Qualified Business Income • Above the threshold but below the phase-in range (more than
Deduction Simplified Computation, to figure your QBI deduction. $364,200 and $464,200 if married filing jointly, and $182,100 and
S corporations and partnerships. S corporations and $232,100 for all other returns), the reduction is phased in; or
partnerships don’t file Form 8995-A because they’re not eligible for • Above the threshold and phase-in range, the full reduction
the deduction. Instead, S corporations and partnerships must pass applies.
through to their shareholders or partners the necessary information Also, if you’re a patron of an agricultural or horticultural
on an attachment to Schedule K-1. cooperative, you must reduce your cooperative QBI by the lesser of:
See the Instructions for Form 1120-S, U.S. Income Tax Return for • 9% of the QBI allocable to qualified payments, or
an S Corporation, and Form 1065, U.S. Return of Partnership • 50% of W-2 wages from the trade or business allocable to the
Income. qualified payments.
Cooperatives. Cooperatives don’t file Form 8995-A because Determining your qualified trades or businesses. Your qualified
they’re not eligible for the deduction. Instead, cooperatives must trades and businesses generally include your trades or businesses
provide the necessary information to their patrons on Form for which you’re allowed a deduction for ordinary and necessary
1099-PATR or an attachment to help eligible patrons figure their business expenses under section 162. However, trades or
deduction. Certain agricultural or horticultural cooperatives may businesses conducted by corporations and the performance of
qualify for a deduction under section 199A(g). services as an employee are never qualified trades or businesses.
Specified service trades or businesses (SSTBs) aren’t qualified
See the Instructions for Form 1120-C, U.S. Income Tax Return for
Cooperative Associations.

Jan 9, 2024 Cat. No. 71687H

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trades or businesses for taxpayers with taxable income, before the       • Actuarial science, including actuaries, and similar professionals;
QBI deduction, above the threshold and phased-in range.                  • Performing arts, including actors, singers, musicians, 
  As provided in section 162, an activity qualifies as a trade or        entertainers, directors, and similar professionals. However, it 
business if your primary purpose for engaging in the activity is for     excludes services that don’t require skills unique to the creation of 
income or profit and you’re involved in the activity with continuity and performing arts, such as the maintenance and operation of 
regularity.                                                              equipment or facilities for use in the performing arts or the provision 
                                                                         of services by persons who broadcast video or audio of performing 
  If you own an interest in a pass-through entity, the trade or          arts to the public;
business determination is made at the entity level. Material             • Consulting, including persons providing clients with professional 
participation under section 469 isn’t required to qualify for the QBI    advice and counsel to assist in achieving goals and solving 
deduction. Eligible taxpayers with income from a trade or business       problems, and persons providing advice and counsel regarding 
may be entitled to the QBI deduction if they otherwise satisfy the       advocacy with the intention of influencing decisions made by a 
requirements of section 199A.                                            government or governmental agency, and lobbyists attempting to 
  The ownership and rental of real property may constitute a trade       influence legislators and other government officials on behalf of a 
or business if it meets the standard described above. Also, Revenue      client, and other similar professionals. However, it excludes the 
Procedure 2019-38 provides a safe harbor under which a rental real       performance of services other than advice or counsel, such as sales 
estate enterprise will be treated as a trade or business for purposes    or the provision of training and educational courses. It also excludes 
of the QBI deduction. Rental real estate that doesn’t meet the           consulting services embedded in or ancillary to the activities of a 
requirements of the safe harbor may still be treated as a trade or       trade or business that isn’t an SSTB, if there is no separate payment 
business for purposes of the QBI deduction if it is a section 162        for the consulting services;
trade or business.                                                       • Athletics, including athletes, coaches, and team managers in 
  Also, the rental or licensing of property to a commonly controlled     sports such as baseball, basketball, football, soccer, hockey, martial 
trade or business operated by an individual or a pass-through entity     arts, boxing, bowling, tennis, golf, skiing, snowboarding, track and 
is considered a trade or business under section 199A.                    field, billiards, racing, and other forms of athletic competition. 
                                                                         However, it excludes services that don’t require skills unique to 
Services performed as an employee excluded from qualified                athletic competition, such as the maintenance and operation of 
trades or businesses.   The trade or business of performing              equipment or facilities for use in athletic events or the provision of 
services as an employee isn’t a trade or business for purposes of        services by persons who broadcast video or audio of athletic events 
section 199A. Therefore, any amounts reported on Form W-2, box 1,        to the public;
other than amounts reported in box 1, if “Statutory Employee” on         • Financial services, including persons managing clients’ wealth, 
Form W-2, box 13, is checked, aren’t QBI. If you were previously an      advising clients on finances, developing retirement plans, 
employee of a business and continue to provide substantially the         developing wealth transition plans, providing advisory and other 
same services to that business after you’re no longer treated as an      similar services regarding valuations, mergers, acquisitions, 
employee, there is a presumption that you’re providing services as       dispositions, restructurings (including in title 11 or similar cases), 
an employee for purposes of section 199A for the 3-year period after     and raising financial capital by underwriting, or acting as a client’s 
ceasing to be an employee. You may rebut this presumption on             agent in the issuance of securities and similar services. This 
notice from the IRS by providing records such as contracts or            includes services provided by financial advisors, investment 
partnership agreements that corroborate your status as a                 bankers, wealth planners, retirement advisors, and other similar 
nonemployee. See Pub. 15-A, Employer’s Supplemental Tax Guide,           professionals. However, it excludes taking deposits or making loans, 
and Pub. 1779, Independent Contractor or Employee.                       but does include arranging lending transactions between a lender 
SSTBs excluded from your qualified trades or businesses.                 and borrower;
SSTBs are generally excluded from the definition of a qualified trade    • Brokerage services, including persons who arrange transactions 
or business if the taxpayer's taxable income exceeds the threshold       between a buyer and a seller of securities for a commission or fee 
plus the phase-in range. Therefore, no QBI, W-2 wages, or UBIA of        such as stock brokers and other similar professionals. However, it 
qualified property from the specified service trade or business are      excludes services provided by real estate agents and brokers, or 
taken into account in figuring your QBI deduction. If the SSTB is        insurance agents and brokers;
conducted by your pass-through entity, the same limitation applies to    • Investing and investment management, including persons 
the pass-through items.                                                  providing, for a fee, investing, asset management, or investment 
                                                                         management services, including providing advice on buying and 
  Exception 1: If your 2023 taxable income before the QBI                selling investments. However, it excludes the service of directly 
deduction isn’t more than $364,200 if married filing jointly, and        managing real property;
$182,100 for all other returns, your SSTB is treated as a qualified      • Trading, including persons who trade in securities (as defined in 
trade or business, and thus may generate income eligible for the QBI     section 475(c)(2)), commodities (as defined in section 475(e)(2)), or 
deduction.                                                               partnership interests;
  Exception 2: If your 2023 taxable income before the QBI                • Dealing securities (as defined in section 475(c)(2)), commodities 
deduction is more than $364,200 but not more than $464,200 if            (as defined in section 475(e)(2)), or partnership interests; and
married filing jointly, $182,100 and $232,100 for all other returns, an  • Any trade or business where the principal asset is the reputation 
applicable percentage of your SSTB is treated as a qualified trade or    or skill of one or more of its employees or owners, as demonstrated 
business, you must complete Schedule A (Form 8995-A).                    by:
  An SSTB is any trade or business providing services in the fields         – Receiving fees, compensation, or other income for endorsing 
of:                                                                         products or services;
• Health, including physicians, pharmacists, nurses, dentists,              – Licensing or receiving fees, compensation or other income for 
veterinarians, physical therapists, psychologists, and other similar        the use of an individual’s image, likeness, name, signature, 
healthcare professionals. However, it excludes services not directly        voice, trademark, or any other symbols associated with the 
related to a medical services field, such as the operation of health        individual’s identity; or
clubs or spas; payment processing; or the research, testing,                – Receiving fees, compensation, or other income for appearing 
manufacture, and sale of pharmaceuticals or medical devices;                at an event or on radio, television, or another media format.
• Law, including lawyers, paralegals, legal arbitrators, mediators,         De minimis rule 1. If your gross receipts from a trade or 
and similar professionals. However, it excludes services that don’t      business are $25 million or less and less than 10% of the gross 
require skills unique to the field of law such as services by printers,  receipts are from the performance of services in a specified service 
delivery services, or stenography services;                              field, then your trade or business isn’t considered an SSTB, and thus 
• Accounting, including accountants, enrolled agents, return             may generate income eligible for the QBI deduction for the tax year, 
preparers, financial auditors, and similar professionals;                regardless of your taxable income.

2                                                                                                    Instructions for Form 8995-A (2023)

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De minimis rule 2. If your gross receipts from the trade or • Wage income (except “Statutory Employees” where Form W-2,
business are more than $25 million and less than 5% of the gross box 13, is checked).
receipts are from the performance of services, then your trade or • Amounts received as reasonable compensation from an S
business isn’t considered an SSTB, and thus may generate income corporation.
eligible for the QBI deduction for the tax year, regardless of your • Amounts received as guaranteed payments.
taxable income. • Amounts received as payments by a partner for services other
De minimis rule 3. If your trade or business provides services or than in a capacity as a partner.
property to an SSTB and there is 50% or more common ownership • Items treated as capital gains or losses under any provision of the
of the trades or businesses, that portion of the business that Code.
provides services or property to the SSTB is treated as a separate • Dividends and dividend equivalents.
SSTB concerning the common owners. • Interest income not properly allocable to a trade or business.
• Commodities transactions or foreign currency gains or losses.
Aggregation. If you’re engaged in more than one trade or business, • Income, loss, or deductions from notional principal contracts.
each trade or business is a separate trade or business for purposes • Annuities (unless received in connection with the trade or
of applying the W-2 wage limitation or UBIA of qualified property business).
limitation, discussed later. However, you may choose to aggregate • Qualified REIT dividends.
multiple trades or businesses into a single trade or business for • Qualified PTP income.
purposes of applying the limitations if you meet the following See the QBI Flow Chart, later, to figure if an item of income, gain,
requirements. deduction, or loss is included in QBI.
1. You or a group of persons directly or indirectly own 50% or Losses or deductions from a qualified trade or business that are
more of each trade or business for a majority of the tax year, suspended by other provisions of the Internal Revenue Code are not
including the last day of the tax year, and all trades or businesses qualified losses or deductions and therefore, are not included in your
use the same tax year end. QBI for the year. Such Code provisions include, but aren’t limited to,
2. None of the trades or businesses are an SSTB. sections 163(j), 179, 461(l), 465, 469, 704(d), and 1366(d). Instead,
3. The trades or businesses meet at least two of the following qualified losses and deductions are taken into account in the tax
factors. year they’re included in calculating your taxable income.
a. They provide products, property, or services that are the When losses or deductions are suspended, you must determine
same or that are customarily offered together. the qualified portion of the losses or deductions that must be
included in QBI in subsequent years when allowed in calculating
b. They share facilities or share significant centralized business your taxable income. In general, losses and deductions incurred
elements such as personnel, accounting, legal, manufacturing, prior to 2018 are not qualified losses or deductions and are not
purchasing, human resources, or information technology resources. included in QBI in the year they are included in calculating taxable
c. They are operated in coordination with, or reliance upon, one income.
or more of the businesses in the aggregated group. If a loss or deduction is partially suspended, only the portion of
If a relevant pass-through entity (RPE) aggregates multiple trades the allowed loss or deduction attributable to QBI must be considered
or businesses, you must attach the RPE’s aggregations to your when determining QBI from the trade or business in the year the loss
Schedule B (Form 8995-A). You may not separate the trades or or deduction is incurred. The portion of the allowed loss or deduction
businesses aggregated by the RPE, but you may add additional attributable to QBI is determined by first calculating the percentage
trades or businesses to the aggregation, assuming the rules above of the total loss attributable to QBI by dividing the portion of the total
are met. If you choose to aggregate multiple trades or businesses, loss attributable to QBI by the overall total loss. The allowed loss or
complete Schedule B (Form 8995-A) before starting Part I of Form deduction is then multiplied by this percentage to determine the
8995-A. portion of the allowed loss or deduction attributable to QBI.
Your aggregations must be reported consistently for all If your trade or business is an SSTB, whether the trade or
subsequent years, unless there is a significant change in facts and business is a qualified trade or business is determined based on
circumstances that disqualify the aggregation. Schedule B (Form your taxable income in the year the loss or deduction is incurred. If
8995-A) must be completed each year to show your trade or your taxable income is within the phase-in range in that year, you
business aggregation(s) and must include any aggregation of an must determine and apply the applicable percentage in the year the
RPE in which you hold a direct or indirect interest. Failure to disclose loss or deduction was incurred to determine the qualified portion of
such aggregated trades or businesses may cause them to be the suspended loss or deduction.
disaggregated. Losses and deductions retain their status as either qualified or
non-qualified from year to year while suspended. Therefore, you
Note. You must combine the QBI, W-2 wages, and UBIA of qualified must track each category of loss or deduction until the loss or
property for all aggregated trades or businesses, for purposes of deduction is no longer suspended. For an example of a reasonable
applying the W-2 wage and UBIA of qualified property limitations. method to track and compute the amount of previously disallowed
Determining your QBI. Your QBI includes qualified items of losses or deductions to be included in your QBI deduction
income, gain, deduction, and loss from your trades or businesses calculation in the year allowed, see Tracking Losses or Deductions
that are effectively connected with the conduct of a trade or business Suspended by Other Provisions, later.
in the United States. This includes qualified items from partnerships When losses or deductions previously suspended by other Code
(other than PTPs), S corporations, sole proprietorships, and certain provisions are allowed in calculating taxable income, the qualified
estates and trusts that are allowed in calculating your taxable portion of the loss or deduction allowed under each provision is
income for the year. treated as a qualified net loss carryforward from a separate trade or
To figure the total amount of QBI, you must consider all items that business when calculating the current year’s QBI deduction.
are attributable to the trade or business. This includes, but isn’t Any qualified loss or deduction from an SSTB allowed in
limited to, unreimbursed partnership expenses, business interest calculating taxable income isn’t included on the Schedule A (Form
expense, deductible part of self-employment tax, self-employment 8995-A) as the applicable percentage was previously determined
health insurance deduction, and contributions to qualified retirement and applied in the year the loss or deduction was incurred and
plans. QBI doesn’t include any of the following. should not be redetermined in the year the loss or deduction is
• Items that aren’t properly includible in income. allowed.
• Income that isn’t effectively connected with the conduct of a trade Determining whether items included on Schedule K-1 are in-
or business within the United States (go to IRS.gov/ECI). cludible in QBI. The amounts reported on your Schedule K-1 as
“QBI/Qualified PTP Items Subject to Taxpayer-Specific
Instructions for Form 8995-A (2023) 3

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Determinations” from a partnership, S corporation, estate, or trust b. Sick pay or annuity payments.
aren’t automatically includible in your QBI. To determine if the item of 3. Subtract (2) from (1).
income, gain, deduction, or loss is includible in QBI, you must look to
how it is reported on your federal income tax return. For example, 4. Add together any amounts reported in box 12 of the relevant
ordinary business income or loss is generally included in QBI if it Forms W-2 that are properly coded D, E, F, G, or S.
was used in computing your taxable income and not excluded, 5. Add (3) and (4).
suspended, or disallowed under any other Code section. Also, a
section 1231 gain or loss is only includible in QBI if it isn’t capital Tracking wages method. Under the tracking wages method,
gain or loss. See the QBI Flow Chart, later, to determine if an item of W-2 wages are figured as follows.
income, gain, deduction, or loss is includible in QBI. 1. Add the amounts that are wages for federal income tax
withholding purposes and that are also reported in box 1 of the
Determining whether information reported on your Form relevant Forms W-2.
1099-PATR is includible in QBI. The amounts reported to you as
your share of patronage dividends and similar payments on Form 2. Add together any amounts reported in box 12 of the relevant
1099-PATR aren’t automatically includible in your QBI. Payments Forms W-2 that are properly coded D, E, F, G, or S.
may be included in QBI to the extent they are (1) related to your 3. Add (1) and (2).
trade or business, (2) reported to you by the cooperative as qualified
items of income on an attachment to Form 1099-PATR, and (3) not To figure your W-2 wages using one of the three methods above,
payments reported as from an SSTB, unless your taxable income is generally use the sum of the amounts you properly report for each
below the threshold, in which case payments from SSTBs are employee on Form W-2, Wage and Tax Statement, for the calendar
includible in your QBI. year ending with or within your tax year. However, don't use any
amounts reported on a Form W-2 filed with the Social Security
If you received qualified payments reported to you on Form Administration more than 60 days after its due date (including
1099-PATR from a specified agricultural or horticultural cooperative, extensions).
you’re required to reduce your QBI by the patron reduction. See
Schedule D (Form 8995-A) Special Rules for Patrons of Agricultural Note. For purposes of determining W-2 wages for limitation
or Horticultural Cooperatives, later. purposes, fiscal year end trades or businesses include qualified
Determining whether items included on Schedule C (Form amounts paid to employees for the calendar year ended with or
1040) are includible in QBI. The net gain or loss as reported on within the business’s tax year.
your Schedule C (Form 1040) isn’t automatically includible in your Short tax year. If you have a short tax year, you must use the
QBI. See the QBI Flow Chart, later, to determine if an item of tracking wages method and do the following.
income, gain, deduction, or loss is includible in QBI. • Add the amounts that are wages for federal income tax
QBI Flow Chart. Use the flow chart to determine if an item of withholding purposes, that are also reported on Form W-2, box 1, for
income, gain, deduction, or loss is includible in QBI. See the QBI any calendar year(s) containing any day within that short tax year,
Flow Chart, later. and that are actually paid during the short tax year; plus
• Any amounts reported in box 12 of the relevant Forms W-2 that
Determining your W-2 wages for limitation purposes. W-2 are properly coded D, E, F, G, or S for any calendar year(s)
wages generally include amounts paid to employees for the containing any day within that short tax year that are actually
performance of services, plus elective deferrals (for example, deferred or contributed during the short tax year.
contributions to 401(k) plans, deferred compensation, and Roth IRA However, if you have a short tax year that doesn't include a
contributions). Amounts paid to statutory employees aren’t W-2 calendar year ending within that short tax year, the following wages
wages when the “Statutory Employee” box on Form W-2, box 13, is are treated as W-2 wages for a short year.
checked. Wages you properly report on Form W-2 that you actually paid
•
If you conduct more than one trade or business, the W-2 wages during the tax year.
must be allocated among the various trades or businesses (or • Amounts reported on Forms W-2, box 12, that are properly coded
aggregated trades or businesses) to the trade or business that D, E, F, G, or S that are actually deferred or contributed during the
generated the wage expense. Also, only the W-2 wages properly short tax year.
allocable to QBI are includible. W-2 wages are properly allocable to
QBI if the associated wage expense is taken into account in Acquisition or disposition of a trade or business. If you
computing QBI. acquired or disposed of a trade or business that causes you and
another employer to pay W-2 wages to employees of the acquired or
Before allocating W-2 wages among various trades or disposed of trade or business during the calendar year, then the W-2
businesses (or aggregated trades or businesses) and/or allocating wages for the calendar year of the acquisition or disposition are
W-2 wages to QBI, first determine the total amount of W-2 wages. allocated between each employer based on the period that the
There are three methods to figure your W-2 wages. employees of the acquired or disposed of trade or business were
• Unmodified box method. employed by each employer. If you have a short tax year that doesn’t
• Modified box 1 method. include a calendar year ending within your short tax year, see Short
• Tracking wages method. tax year, earlier.
Unmodified box method. Under the unmodified box method,
W-2 wages are the smaller of: Non-duplication rule. Amounts that are treated as W-2 wages for
a tax year under any method can't be treated as W-2 wages for any
1. The sum of the amounts reported in box 1 of the relevant other tax year. Also, an amount can't be treated as W-2 wages by
Forms W-2, or more than one taxpayer.
2. The sum of the amounts reported in box 5 of the relevant
Forms W-2. Determining your UBIA of qualified property. For purposes of
determining your UBIA for all qualified property, the unadjusted basis
Modified box 1 method. Under the modified box 1 method, W-2 immediately after acquisition means the basis on the
wages are figured as follows. placed-in-service date. Qualified property includes tangible property
1. Add the amounts reported in box 1 of the relevant Forms subject to depreciation under section 167 held, and used in the
W-2. production of QBI, by the trade or business (or aggregated trades or
businesses) during and at the close of the tax year, for which the
2. Add all amounts not considered wages, for federal income depreciable period hasn’t ended before the close of the tax year.
tax withholding purposes including, but not limited to: The depreciable period ends on the later of 10 years after the
a. Supplemental unemployment compensation benefits within property is first placed in service by you or the last day of the last full
the meaning of Rev. Rul. 90-72, and year in the applicable recovery period under section 168(c).

4 Instructions for Form 8995-A (2023)

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Additional first-year depreciation under section 168 doesn’t affect Alternative minimum tax. The QBI deduction used to determine
the applicable recovery period. regular tax is also used to determine alternative minimum taxable
Improvements to property that has already been placed in income.
service are treated as separate qualified property.
Net earnings from self-employment aren’t reduced by the QBI
For qualified replacement property acquired in a section 1031 deduction when computing self-employment tax.
exchange that’s of a like-kind to the qualified relinquished property,
or for qualified replacement property acquired in a section 1033 Net investment income isn’t reduced by the QBI deduction when
involuntary conversion that’s similar or related in service or use to computing net investment income tax.
the qualified converted property, the UBIA of the qualified Puerto Rico. For purposes of determining QBI, the United States
replacement property is the same as the UBIA of the qualified includes Puerto Rico for taxpayers who have taxable income from
property exchanged, converted, decreased by excess boot, or sources within Puerto Rico that are subject to tax under section 1.
increased by the amount of money paid or the fair market value of Further, W-2 wages are figured by including W-2 wages paid for
property transferred by the taxpayer that isn’t of a like-kind or similar services performed in Puerto Rico without regard to section 3401(a)
or related in service or use. (8).
Generally, replacement property retains the same
placed-in-service date as that of the relinquished property. However, Specific Instructions
for the portion of the replacement property’s UBIA that exceeds the You may need to complete Schedule A, B, C, and/or D, as
relinquished property’s UBIA, that portion is treated as separate applicable, prior to starting Part I of the form.
qualified property placed in service on the date on which the
replacement property is first placed in service. Taxable income before qualified business income deduction.
Form 8995-A, Part III, Part IV, and Schedule A (Form 8995-A) each
Generally, property received in a nonrecognition transaction ask for your taxable income figured without regard to the QBI
(section 332, 351, 361, 721, or 731) retains the same UBIA and deduction. Enter your taxable income figured before any QBI
placed-in-service date as that of the transferor. However, for the deduction, computed as follows.
portion of the transferee’s UBIA that exceeds the transferor’s UBIA, • Form 1040, 1040-SR, or 1040-NR filers: Form 1040, 1040-SR, or
that portion is treated as separate qualified property placed in 1040-NR, line 11, minus Form 1040, 1040-SR, or 1040-NR, line 12.
service on the date of the transfer. • Form 1041 filers: Form 1041, line 23, plus Form 1041, line 20.
Property acquired within 60 days of the year end that’s disposed • Form 1041-N filers: Form 1041-N, line 13, plus qualified income
of within 120 days without being used by the trade or business for at deduction reported on Form 1041-N, line 9.
least 45 days is generally not qualified property. • Form 990-T filers: Form 990-T, Part I, line 11, plus qualified
business income deduction reported on Form 990-T, Part I, line 9.
Determining Your REIT/PTP • S-corporation portion of an ESBT filer: ESBT Tax Worksheet,
line 13, plus ESBT Tax Worksheet, line 11.
Component
Your qualified REIT/PTP component equals 20% of your qualified Schedule A (Form 8995-A)—Specified Service
REIT dividends and qualified PTP income or loss (including your
share of qualified REIT dividends and qualified PTP income or loss Trades or Businesses
from RPEs). Complete Schedule A only if your trade or business is a SSTB and
your taxable income is more than $182,100 but not $232,100
Qualified REIT dividends include any dividend you received from ($364,200 and $464,200 if married filing jointly).
a REIT held for more than 45 days and for which the payment isn’t
obligated to someone else and that isn’t a capital gain dividend If your taxable income isn't more than $182,100 ($364,200 if
under section 857(b)(3) and isn’t a qualified dividend under section married filing jointly) and you're not a patron of an agricultural or
1(h)(11). Plus, your qualified REIT dividends include those received horticultural cooperative, don't file Form 8995-A; instead, file Form
from a regulated investment company (RIC). 8995, Qualified Business Income Deduction Simplified
Computation. Otherwise, complete Schedule D (Form 8995-A)
Qualified PTP income/(loss) includes your share of qualified before beginning Schedule A.
items of income, gain, deduction, and loss from a PTP that is not
treated as a corporation for federal income tax purposes. It may also If your taxable income is more than $232,100 ($464,200 if
include gain or loss recognized on the disposition of your PTP married filing jointly), your SSTB doesn't qualify for the deduction.
interest that isn’t treated as a capital gain or loss. It doesn’t include
any loss or deduction disallowed in determining your taxable income Schedule A (Form 8995-A), Part II, should be used for SSTBs
for the year. Qualified REIT dividends are reported to you on Form that are PTPs, and Part I should be used for all other SSTBs.
1099-DIV, Dividends and Distributions, box 5, Section 199A
dividends. See SSTBs excluded from your qualified trades or businesses,
earlier.
Note. PTP income generated by an SSTB may be limited to the
applicable percentage if your taxable income is within the phase-in Lines 2 and 16. Enter your QBI or Qualified PTP income for each
range or completely excluded from qualified PTP income if your SSTB, as applicable.
taxable income is above the phase-in range. See Schedule A (Form Lines 5 and 18. See Taxable income before qualified business
8995-A) Specified Service Trades or Businesses, later. income deduction, earlier.

Coordination With Other Code Schedule B (Form 8995-A)—Aggregation of
Sections Business Operations
A net operating loss under section 172 is generally figured without If you qualify and choose to aggregate multiple trades or businesses
the QBI deduction, meaning the QBI deduction can’t create or into a single trade or business, you must complete Schedule B
increase the net operating loss. However, an excess business loss before starting Part I.
under section 461(l) is treated as a net operating loss carryforward Line 3(c). Enter your QBI for each separate trade or business.
to the following tax year and is taken into account for purposes of
computing QBI in the subsequent tax year in which it is deducted. Line 4. If any of your aggregations have a qualified business loss for
the current year or you have a qualified business net loss
carryforward from prior years, you must complete Schedule C (Form
8995-A) before starting Part I.
Instructions for Form 8995-A (2023) 5

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If none of your aggregations have a qualified business loss in the production, growth, or extraction of any agricultural or horticultural
current year and you don’t have a qualified business loss products to which Part I of subchapter T applies. See section
carryforward from prior years, enter the total amounts on the 199A(g)(3). Also see TD 9947.
appropriate lines of Form 8995-A, Part II.
Line 2. Input the QBI for the trade or business as properly allocable
to qualified payments received from the cooperative. Qualified
Schedule C (Form 8995-A)—Loss Netting and payments include patronage dividends and per-unit retains
Carryforward allocations.
If any of your trades, businesses, or aggregations have a qualified Line 4. Enter the portion of W-2 wages from Form 8995-A, line 4,
business loss for the current year or you have a qualified business that are allocable to the qualified payments.
net loss carryforward from prior years, you must complete
Schedule C (Form 8995-A) before starting Form 8995-A, Part I. This Part I—Trade, Business, and Aggregation
includes prior year loss carryforwards even if the loss was
unreported or the trade or business that generated the loss is no Information
longer in existence. You must complete Part I if you have QBI from a qualified trade,
business, or aggregation. If you don’t have QBI, and only have REIT,
Schedule C (Form 8995-A) offsets your trade or business that PTP, skip Parts I through III and complete Part IV. Before you begin
generated a qualified business loss against the QBI from your other completing Part I, determine if you need to complete Schedule A, B,
trades or businesses. The qualified business loss must be or C by answering the following questions.
apportioned among all your trades or businesses with QBI in
proportion to their QBI. 1. Do you have an SSTB? If yes, see Schedule A (Form
8995-A) Specified Service Trades or Businesses, earlier.
Note. The line items for this schedule are computed out of order: 2. Are you choosing to aggregate multiple trades or businesses
first figure line 1, column (a); then skip to lines 2 through 5; and into a single trade or business? If yes, complete Schedule B (Form
come back to line 1, columns (b) and (c). 8995-A) before starting Part I.
Line 1, column (a). If you aggregated multiple trades or 3. Did any of your trades, businesses, or aggregations have QBI
businesses into a single business on Schedule B (Form 8995-A), for the year or do you have a qualified business loss carryforward
enter the aggregation group name, Aggregation 1, 2, 3, etc., instead from prior years? If yes, complete Schedule C (Form 8995-A) before
of entering the business name along with the aggregated trade’s or starting Part I.
business’s QBI.
Line 1. If you aggregated multiple trades or businesses into a single
Line 2. This includes the amount reported in the prior year on business on Schedule B (Form 8995-A), enter the aggregation group
Schedule C (Form 8995-A), line 6, or if the simplified worksheet was name, for example, Aggregation 1, 2, 3, etc., instead of entering the
previously used, Form 8995, line 16, including prior year loss business name, check the box under 1(c), and leave line 1(d) blank.
carryforwards even if the loss was unreported or the trade or
business that generated the loss is no longer in existence. This also Enter on line 1(d) the employer identification number (EIN). If you
includes the QBI portion of losses or deductions suspended from don’t have an EIN, enter your social security number (SSN) or
use in calculating taxable income in the year generated that are individual taxpayer identification number (ITIN). If you’re the sole
included in taxable income in the current year. See Determining your owner of a limited liability company (LLC) that isn’t treated as a
QBI, earlier, and QBI Loss Tracking Worksheet, later. separate entity for federal income tax purposes, enter the EIN given
to the LLC. If you don’t have such an EIN, enter the owner's name,
Line 1, column (b). Apportion the amount from line 5 among all and tax identification number.
your trades or businesses with QBI, but not loss, in proportion to
their QBI. Part II—Determine Your Adjusted Qualified
Line 1, column (c). Enter this amount on the corresponding line on Business Income
Form 8995-A, Part II. You must complete Part II if you have QBI from a qualified trade,
business, or aggregation.
Note. If the adjusted QBI from the trade or business is zero or less
after the reduction for loss netting, then the amount reported for W-2 Line 2. If you have four or more trades or businesses, attach a
wages and UBIA of qualified property must be zero for that trade or statement with the information for Parts I, II, and III, as applicable.
business, as the W-2 wages and UBIA of qualified property from that See Schedule C (Form 8995-A)—Loss Netting and Carryforward,
trade or business aren’t allowed in computing your QBI limitations. earlier.
Line 6. The amount reported on this line must be reported in the Line 4. Enter your W-2 wages from the trade, business, or
next tax year on Schedule C (Form 8995-A), line 2, or Form 8995, aggregation.
line 3, Qualified business net (loss) carryforward from prior years, as
applicable. This amount will offset QBI in subsequent tax years Note. If the QBI on line 2, for the trade, business, or aggregation, is
regardless of whether it is reported and whether the trade or zero, then the amount reported on line 4, for that trade or business,
business that generated the loss is still in existence. This must also be zero.
carryforward doesn’t affect the deductibility of the loss for purposes Line 7. Enter your share of the UBIA for all qualified property for the
of any other provisions of the Code. trade or business.
Note. If you have an overall qualified business net loss carryforward Note. If the QBI on line 2, for the trade, business, or aggregation, is
for the year, you don’t qualify for a QBI deduction in the current year zero, then the amount reported on line 7, for that trade or business,
unless you have qualified REIT dividends or qualified PTP income. must also be zero.
Schedule D (Form 8995-A)—Special Rules for Line 14. Report the amount from Schedule D (Form 8995-A), line 6,
if any. Patrons of agricultural or horticultural cooperatives are
Patrons of Agricultural or Horticultural required to reduce their QBI component by the lesser of:
Cooperatives • 9% of QBI allocable to qualified payments from a specified
You must complete Schedule D (Form 8995-A) if you’re a patron in a cooperative, or
specified agricultural or horticultural cooperative and are claiming a • 50% of W-2 wages allocable to qualified payments.
QBI deduction in relation to your trade or business conducted with If you’re a patron of an agricultural or horticultural cooperative,
the cooperative. A specified agricultural or horticultural cooperative complete Schedule D (Form 8995-A). See Schedule D (Form
is a cooperative that markets or is engaged in the manufacturing,

6 Instructions for Form 8995-A (2023)

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8995-A)—Special Rules for Patrons of Agricultural or Horticultural • Form 1040, 1040-SR, or 1040-NR filers, your qualified dividends
Cooperatives, earlier. on line 3a, plus your net capital gain. If you’re not required to file
Schedule D (Form 1040), your net capital gain is the amount
Line 15. Subtract the patron reduction on line 14 from the amount reported on Form 1040, 1040-SR, or 1040-NR, line 7. If you file
on line 13. If zero or less, enter zero. Schedule D (Form 1040), your net capital gain is the smaller of
Line 16. Add all amounts reported on line 15. If there are four or Schedule D (Form 1040), line 15 or 16, unless line 15 or 16 is zero or
more trades or businesses, include line 15 amounts from all trades less, in which case nothing is added to your qualified dividends.
or businesses and complete line 16 only on the first page. Leave • Form 1041 filers, your qualified dividends allocable to estates and
line 16 blank on the attached statements described in the line 2 trusts on line 2b(2). For estates or trusts required to file Schedule D
instructions. (Form 1041), add the qualified dividends to the smaller of
Schedule D (Form 1041), line 18a(2), or line 19(2), unless either
Part III—Phased-in Reduction line 18a(2) or 19(2) is zero or less, in which case nothing is added to
Complete Part III only if your taxable income is more than $182,100 your qualified dividends.
but not $232,100 ($364,200 and $464,200 if married filing jointly) • Form 1041-N filers, your qualified dividends line 2b, plus the
and line 10 is less than line 3. Otherwise, skip Part III. smaller of Form 1041-N, Schedule D, lines 10 or 11, unless line 10
or 11 is zero or less, in which case nothing is added to your qualified
Line 20. See Taxable income before qualified business income dividends.
deduction, earlier. • Form 990-T filers who are trusts, Schedule D (Form 1041), the
smaller of line 18(a)(2) or 19(2), unless either line 18(a)(2) or 19(2) is
Part IV—Determine Your Qualified Business zero or less, in which case the net capital gain for purposes of
Income Deduction section 199A is zero.
• S-corporation portion of an ESBT, your ESBT Tax Worksheet,
If you’re claiming a QBI deduction, you must complete Part IV. line 2b, plus the smaller of your ESBT’s Schedule D (Form 1041),
Line 28. If the net amount is a loss, enter as a negative number. line 18(a)(2), or line 19(2), is zero or less, in which case nothing is
Any negative amount will be carried forward to the next year. This added to your qualified dividends.
carryforward doesn’t affect the deductibility of the loss for purposes Line 39. Enter the amount from line 39 on Form 1040 or 1040-SR,
of any other provisions of the Code. line 13; Form 1040-NR, line 13a; Form 1041, line 20; Form 1041-N,
Line 33. See Taxable income before qualified business income line 9; Form 990-T, line 9; S-corporation portion of an ESBT, line 11.
deduction, earlier. Line 40. If the sum of lines 28 and 29 result in a loss (negative
Line 34. Enter the amount from your tax return as follows. number), the loss must be carried forward to next year.

Instructions for Form 8995-A (2023) 7

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QBI Flow Chart
Figure 1. Use this chart to determine if an item of income, gain, deduction, or loss is included in QBI.
1. Is the item effectively connected with the conduct of a trade or No
business within the United States?
Yes

2. Is the item from a trade or business (this includes general
business income and deduction items as well as deductible tax on
self-employment income, self-employed health insurance, No
contributions to qualied retirement plans, unreimbursed
partnership expenses, and interest expenses for the purchase of the
partnership/S corporation interest/stock)?

Yes

3. If the item is from a pass-through entity (partnership,
S corporation, or trust) and the character of the item can’t be
determined at the entity level (section 1231 gains/losses, involuntary No
conversions, interest from debt-nanced distributions, etc.), did you
determine the item to be ordinary (not capital or personal)? Note: If
the item isn’t from a pass-through entity and it doesn’t require a
determination at the investor level, skip this test.
Yes

4. Is the item included in guring your taxable income? Items No
disallowed or limited, including the basis, at-risk, passive loss, or
excess business loss rules, aren’t included in QBI until the year
included in taxable income.
Yes
5. Is the item treated as a capital gain (loss) or dividend/dividend Yes
equivalent?
No
6. Is the item interest income other than interest income allocable to
a trade or business? Note: Interest income from an investment of Yes
working capital, reserves, or similar accounts isn’t allocable to a
trade or business.
No
7. Is the item an annuity, other than an annuity received in Yes
connection with the trade or business?
No
8. Is the item a commodities transaction, foreign currency gain (loss) Yes
described in section 954(c)(1)(C) or (D), or from a notional principal
contract under section 954(c)(1)(F)?
No

9. Is the item qualied PTP income (loss)? If “Yes,” it’s not QBI, but
it’s included in the REIT/PTP component of the QBI computation. Yes
Include this item as a qualied item of income, gain, deduction, or
loss from a PTP.

No
10. Is the item W-2 wage income (except where “Statutory Yes This item isn’t QBI.
employee” is checked in box 13 of Form W-2)?
No
See Figure 2, QBI Flow
Chart (continued).

8 Instructions for Form 8995-A (2023)

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QBI Flow Chart (continued)
Figure 2. Use this chart to determine if an item of income, gain, deduction, or loss is included in QBI.
11. Is the item an amount received for reasonable compensation Yes
from an S corporation, an amount received as a guaranteed
payment, or a payment received for services other than in a capacity
as a partner under section 707(a)?
No
No
12. Is the item related to an SSTB?
Yes
Yes
13. Is your taxable income at or below the threshold?
No
14. Is your taxable income above the threshold and within the Yes
phase-in range? If “Yes,” this item is partially includible in QBI. This item is QBI. This item isn’t QBI.
Complete Schedule A (Form 8995-A).
No

prior year suspended losses allowed must first be allocated to any
Tracking Losses or Deductions losses suspended from 2017 and earlier, until the pre-2018 losses
Suspended by Other Provisions (row 1) are exhausted. All prior year suspended losses allowed
allocated to pre-2018 years are Non-QBI. Once all pre-2018 losses
A worksheet, QBI Loss Tracking Worksheet (below), is have been used, losses will be allocated based on the QBI Fixed
! provided that can help you track your suspended losses. Percentage in column B for each subsequent year in which losses
CAUTION Losses and deductions that would be properly includible in were suspended.
QBI, if such loss or deduction wasn't suspended (excluded from
taxable income) by other provisions, must be tracked separately for Prior Year Suspended Losses Allowed in 2018
purposes of determining the future amount includible as negative
QBI. Use as many copies of the worksheet as necessary to Note. If column C, row 2, is zero, skip Step 1 through Step 3.
separately track your suspended loss(es) under each suspending Step 1. Allocate prior year suspended losses allowed from column
provision. C, row 2, up to the total suspended losses reported in column A, row
1, to column F, row 2.
Specific Instructions Step 2. If there are any prior year suspended losses allowed
remaining from column C, row 2, after Step 1, allocate the remaining
Note. All losses should be entered as a negative number on the prior year suspended losses allowed between QBI and Non-QBI.
worksheet.
1. For the allocation to QBI, multiply the remaining losses (after
Column A. Total suspended losses in year of disallowance. Step 1), up to the total suspended losses reported in column A, row
For rows 1 through 7, enter your suspended losses by year starting 2, by column B, row 2, and enter this amount in column J, row 2.
with any pre-2018 losses. Additional rows can be added as needed 2. For the allocation to Non-QBI, multiply the remaining losses
in future years. Allocate these losses between Non-QBI and QBI in (after Step 1), up to the total suspended losses reported in column
columns E and I. See below. A, row 2, by 100% less the amount in column B, row 2, and add it to
Note. All pre-2018 losses are allocable to Non-QBI. any amount already included in column F, row 2.
Column E. Non-QBI suspended losses. For rows 1 through 7, Step 3. See the instructions for columns G, K, H, and L for rows 1
enter suspended losses allocable to Non-QBI into the appropriate and 2.
year row (row 1, pre-2018; row 2, 2018; row 3, 2019, etc.).
Column I. QBI suspended losses. For rows 2 through 7, enter Prior Year Suspended Losses Allowed in 2019
suspended losses allocable to QBI into the appropriate year row Note. If column C, row 3, is zero, skip Step 4 through Step 6.
(row 2, 2018; row 3, 2019, etc.).
Step 4. Allocate prior year suspended losses allowed from column
Column B. QBI fixed percentage. Divide column I by column A for C, row 3, up to the remaining suspended losses reported in column
each year and enter the percentage in the corresponding year row. H, row 1, to column F, row 3.
Column C. Prior year suspended losses allowed. For rows 2 Step 5. If there are any prior year suspended losses allowed
through 7, enter any prior year suspended losses allowed in the remaining from column C, row 3, after Step 4, allocate the remaining
corresponding row for the year allowed. prior year suspended losses allowed between QBI and Non-QBI
using the FIFO method until each year's loss has been reduced to
Note. The total prior year suspended losses allowed entered in zero.
column C, row 8, can't exceed the total amount entered in column A,
row 8. 1. For the allocation to QBI, multiply the remaining losses (after
Step 4), up to the sum of the remaining suspended losses reported
Column F. Non-QBI allocated prior year suspended losses al- in column H, row 2, and column L, row 2, by column B, row 2, and
lowed; and column J, QBI allocated prior year suspended los- enter this amount in column J, row 3.
ses allowed. When allocating prior year suspended losses allowed
(column C) between Non-QBI (column F) and QBI (column J), the 2. For the allocation to Non-QBI, multiply the remaining losses
First-In-First-Out (FIFO) method must be used. To apply this rule, (after Step 4), up to the sum of the remaining suspended losses

Instructions for Form 8995-A (2023) 9

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reported in column H, row 2, and column L, row 2, by 100% less the   Column D. Allowed losses limited by other Code sections. 
amount in column B, row 2, and add it to any amount already          When a prior year suspended loss allowed under one Code section 
included in column F, row 3.                                         is subsequently limited by another Code section, this loss shouldn't 
3. If any prior year suspended losses allowed remain from            be included in the QBI calculation until the loss is allowed in the 
column C, row 3, after Steps 5(a) and (b), multiply the remaining    computation of taxable income. Instead, that loss is added to the 
losses (after Steps 5(a) and (b)), up to the sum of the remaining    total suspended losses in the year of disallowance under the new 
suspended losses reported in column H, row 3, and column L, row 3,   limiting Code section for continuation of its suspension. This column 
by column B, row 3, and add it to any amount already included in     along with row 9, addresses how to account for such losses.
column J, row 3.                                                     In column D, enter the amount of any prior year suspended 
4. Then, multiply the remaining losses (after Steps 5(a) and         losses allowed under this Code section, but subsequently 
(b)), up to the sum of the remaining suspended losses reported in    disallowed under another Code section on the row for the year the 
column H, row 3, and column L, row 3, by 100% less the amount in     loss was allowed under this Code section. These amounts will be 
column B, row 3, and add it to any amount already included in        allocated between Non-QBI and QBI in columns G and K for the 
column F, row 3.                                                     corresponding year. See Row 9 below.
Step 6. See the instructions for columns G, K, H, and L for rows 1   Row 9. Allocation of allowed losses limited by other Code sec-
through 3.                                                           tions. To allocate the allowed losses limited by other Code sections 
                                                                     between QBI and Non-QBI, start with QBI for the 2018 row. Divide 
                                                                     column K(i), row 8, by the sum of column K(i), row 8, and column 
Prior Year Suspended Losses Allowed in 2020 and                      G(i), row 8, multiplied by column D, row 2, and enter this amount in 
Beyond                                                               column K(i), row 9. Written as a formula: column K(i), row 9 = column 
                                                                     D, row 2 x (column K(i), row 8 ÷ (column K(i), row 8 + column G(i), 
Repeat Step 4 through Step 6 and adjust as necessary for any prior   row 8)).
year suspended losses allowed in column C, row 4, and each row       Next, compute the amount for Non-QBI for the 2018 row. Divide 
thereafter, as applicable.                                           column G(i), row 8, by the sum of column G(i), row 8, and column 
                                                                     K(i), row 8, multiplied by column D, row 2, and enter this amount in 
Additional year rows and columns may be added as needed in           column G(i), row 9. Written as a formula: column K(i), row 9 = 
future years.                                                        column D, row 2 x (column G(i), row 8 ÷ (column G(i), row 8 + 
Columns G and K. Utilized “20XX.”     Use these columns to show      column K(i), row 8)).
how the allocated prior year suspended losses allowed in columns F   Continue the computation for columns K(ii) and G(ii) through 
and J are utilized each year. For example, the loss reported in      K(vi) and G(vi), multiply the percentage times the amount in column 
column F, row 2, must tie to the amount reported in column G(i), row D, row 5, for 2021, column D, row 6, for 2022, and column D, row 7, 
8; and the loss reported in column F, row 3, must tie to the amount  for 2023, respectively.
reported in column G(ii), row 8, etc.                                Row 10. Total prior year suspended losses allowed that must 
Column H. Remaining suspended losses. For each row, take the         be included in QBI.    The amounts reported in columns K(i) through 
amount in column E less the amounts utilized in all columns G(i)     K(vi) for row 10, equal the loss amount that must be included in your 
through G(vi). This amount can't be more than zero.                  current year QBI, respectively, for each year, as a loss from a 
                                                                     separate trade or business.
Column L. Remaining suspended losses. For each row, take the 
amount in column I less the amounts utilized in all columns K(i) 
through K(vi). This amount can't be more than zero.

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                                                                                                  Keep for Your Records

QBI Loss Tracking Worksheet
Use this worksheet to track losses or deductions suspended by other provisions and attributable to QBI using FIFO method.
Code              [Enter the Code section limiting your loss]
Part I      Suspended & Allowed Losses
                  A. Total suspended               B. QBI ﬁxed percentage          C. Prior year          D. Allowed losses 
                    losses in year                                                 suspended              limited by other 
                  of disallowance                                                  losses allowed         Code sections
1.  Pre-2018                                                 0.00         %
2.   2018                                                                 %
3.   2019                                                                 %
4.   2020                                                                 %
5.   2021                                                                 %
6.   2022                                                                 %
7.   2023                                                                 %
8.   Total
Part II     Non-QBI Suspended and Allowed Losses
Allocable to Non-QBI
             E. Suspended    F. Allocated          G(i).     G(ii).        G(iii). G(iv).         G(v).   G(vi).         H. Remaining 
                  losses     prior year            Utilized  Utilized     Utilized Utilized      Utilized Utilized       suspended 
                             suspended             2018      2019          2020    2021           2022    2023           losses
                             losses allowed
1.  Pre-2018
2.   2018
3.   2019
4.   2020
5.   2021
6.   2022
7.   2023
8.   Total
9.  Allocation of allowed losses limited by other 
    Code sections . .    . . .      . . . .
Part III    QBI Suspended and Allowed Losses
Allocable to QBI
             I. Suspended    J. Allocated          K(i).     K(ii).        K(iii). K(iv).         K(v).   K(vi).         L. Remaining 
                  losses     prior year            Utilized  Utilized     Utilized Utilized      Utilized Utilized       suspended 
                             suspended             2018      2019          2020    2021           2022    2023           losses
                             losses allowed
1.  Pre-2018
2.   2018
3.   2019
4.   2020
5.   2021
6.   2022
7.   2023
8.   Total
9.  Allocation of allowed losses limited by other 
    Code sections . .    . . .      . . . .
10. Total  prior  year  suspended  losses  allowed 
    that must be included in QBI  . . . . .

Instructions for Form 8995-A (2023)                                                                                                   11

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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Paperwork Reduction Act Notice We ask for the information on this form to carry out the Internal Revenue laws of the United States. You
are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the
right amount of tax.
You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays
a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become
material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section
6103.
The time needed to complete and file this form will vary depending on individual circumstances.
Form Recordkeeping Learning Preparing, copying, assembling, and
sending
8995 4 hr., 43 min. 51 min. 2 hr., 6min.
8995-A 7 hr., 52 min. 1 hr., 53 min. 6 hr., 6 min.
Schedule A (8895-A) 3 hr., 16 min. 7 min. 1 hr., 15 min.
Schedule B (8895-A) 1 hr., 34 min. — 20 min.
Schedule C (8895-A) 1 hr., 19 min. 7 min. 50 min.
Schedule D (8895-A) 1 hr., 5 min. 16 min. 47 min.

12 Instructions for Form 8995-A (2023)

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