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Department of the Treasury
Internal Revenue Service
2022

Instructions for Form 8995-A

Deduction for Qualified Business Income

Section references are to the Internal Revenue Code no DNI for the tax year, section 199A items
unless otherwise noted. Who Can Take the
are allocated entirely to the estate or trust.
Deduction Estates and trusts may compute their
Future Developments Individuals and eligible estates and trusts own QBI deduction to the extent section
For the latest information about use Form 8995-A to figure the QBI deduction 199A items are allocated to the estate or
developments related to Form 8995-A and if: trust. However, section 199A items allocated
its instructions, such as legislation enacted • You have QBI, qualified REIT dividends, to beneficiaries aren’t includible in the
after they were published, go to IRS.gov/ or qualified PTP income or loss; and estate’s or trust’s QBI deduction
Form8995A. • Your 2022 taxable income before your computation. See the Instructions for Form
QBI deduction is more than $340,100 1041, U.S. Income Tax Return for Estates
married filing jointly, and $170,050 for all and Trusts.
What’s New other returns; or
Taxable income limitation adjustments. • You’re a patron in a specified agricultural Electing Small Business Trusts (ESBT).
Taxable income limitations are adjusted for or horticultural cooperative. An ESBT is required to compute the QBI
inflation and increased. The married filing deduction separately for the S and non-S
separately income limitation amount is the Otherwise, use Form 8995, Qualified portions of the trust. If applicable, the Form
same as the “Single” income limitation Business Income Deduction Simplified 8995-A used to compute the S portion’s QBI
amount for the 2022 tax year. Computation, to figure your QBI deduction. deduction must be attached as a PDF to the
Filing status name changed to qualifying S corporations and partnerships. S ESBT Tax Worksheet filed with Form 1041,
surviving spouse. The filing status corporations and partnerships don’t file Form and the trust must indicate that the
qualifying widow(er) is now called qualifying 8995-A because they’re not eligible for the information is applicable to the S portion
surviving spouse. The rules for the filing deduction. Instead, S corporations and only, by writing “ESBT” in the top margin of
status have not changed. The same rules partnerships must pass through to their the Form 8995-A. See the Instructions for
that applied for qualifying widow(er) apply to shareholders or partners the necessary Form 1041.
qualifying surviving spouse. information on an attachment to
Schedule K-1. Determining Your QBI
See the Instructions for Form 1120-S, Deduction
General Instructions U.S. Income Tax Return for an S
Corporation, and Form 1065, U.S. Return of Determine your QBI component. To
Purpose of Form Partnership Income. figure your QBI deduction, you must first
determine your QBI component. Your QBI
Use Form 8995-A to figure your qualified Cooperatives. Cooperatives don’t file Form component is generally 20% of your QBI
business income (QBI) deduction. Include 8995-A because they’re not eligible for the from your domestic trades or businesses.
the following schedules (their specific deduction. Instead, cooperatives must However, if your taxable income (before the
instructions are shown later), as appropriate: provide the necessary information to their QBI deduction) exceeds the threshold
• Schedule A (Form 8995-A), Specified patrons on Form 1099-PATR or an ($340,100 if married filing jointly, and
Service Trades or Businesses attachment to help eligible patrons figure $170,050 for all other returns), your QBI for
• Schedule B (Form 8995-A), Aggregation their deduction. Certain agricultural or each of your trades or businesses may be
of Business Operations horticultural cooperatives may qualify for a partially or fully reduced to the greater of
• Schedule C (Form 8995-A), Loss Netting deduction under section 199A(g). 50% of W-2 wages paid by the qualified
and Carryforward
• Schedule D (Form 8995-A), Special Rules See the Instructions for Form 1120-C, trade or business, or 25% of W-2 wages plus
for Patrons of Agricultural or Horticultural U.S. Income Tax Return for Cooperative 2.5% of the UBIA of qualified property from
Cooperatives Associations. the qualified trade or business. The partial or
full reduction to QBI is determined by your
In general, the amount of your QBI Estates and trusts. To the extent that a taxable income. If your taxable income
deduction equals your QBI component plus grantor or another person is treated as (before the QBI deduction) is:
your qualified real estate investment trust owning all or part of a trust or estate, the • At or below the threshold, you don’t need
(REIT) and qualified publicly traded owner will compute its QBI deduction for the to reduce your QBI;
partnership (PTP) component (REIT/PTP portion of the trust owned as if section 199A • Above the threshold but below the
component). However, the deduction is items had been received directly by the phase-in range (more than $340,100 and
limited to the lesser of this amount or 20% of owner. Generally, in the case of a $440,100 if married filing jointly, and
your taxable income, calculated before the non-grantor trust or estate, the trust or estate $170,050 and $220,050 for all other returns),
QBI deduction, minus your net capital gain. may either claim the QBI deduction or the reduction is phased in; or
Depending on your taxable income, your QBI provide information to their beneficiaries. In • Above the threshold and phase-in range,
component may also be limited based on the determining the QBI deduction or the the full reduction applies.
type of trade or business, W-2 wages paid by information that must be provided to
that business, and Unadjusted Basis beneficiaries, the estate or trust allocates Also, if you’re a patron of an agricultural
Immediately after Acquisition (UBIA) of section 199A items based on the relative or horticultural cooperative, you must reduce
qualified property held by the business. proportion of the estate's or trust's your cooperative QBI by the lesser of:
distributable net income (DNI) for the tax • 9% of the QBI allocable to qualified
year distributed (or required to be payments, or
distributed) to the beneficiary or retained by • 50% of W-2 wages from the trade or
the estate or trust. If the estate or trust has business allocable to the qualified payments.

Jan 5, 2023 Cat. No. 71687H

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Determining your qualified trades or           SSTBs excluded from your qualified               educational courses. It also excludes 
businesses. Your qualified trades and          trades or businesses.   SSTBs are                consulting services embedded in or ancillary 
businesses generally include your trades or    generally excluded from the definition of a      to the activities of a trade or business that 
businesses for which you’re allowed a          qualified trade or business if the taxpayer's    isn’t an SSTB, if there is no separate 
deduction for ordinary and necessary           taxable income exceeds the threshold plus        payment for the consulting services;
business expenses under section 162.           the phase-in range. Therefore, no QBI, W-2       • Athletics, including athletes, coaches, and 
However, trades or businesses conducted        wages, or UBIA of qualified property from the    team managers in sports such as baseball, 
by corporations and the performance of         specified service trade or business are taken    basketball, football, soccer, hockey, martial 
services as an employee are never qualified    into account in figuring your QBI deduction. If  arts, boxing, bowling, tennis, golf, skiing, 
trades or businesses. Specified service        the SSTB is conducted by your pass-through       snowboarding, track and field, billiards, 
trades or businesses (SSTBs) aren’t            entity, the same limitation applies to the       racing, and other forms of athletic 
qualified trades or businesses for taxpayers   pass-through items.                              competition. However, it excludes services 
                                                                                                that don’t require skills unique to athletic 
with taxable income, before the QBI              Exception 1: If your 2022 taxable income       competition, such as the maintenance and 
deduction, above the threshold and             before the QBI deduction isn’t more than         operation of equipment or facilities for use in 
phased-in range.                               $340,100 married filing jointly, and $170,100    athletic events or the provision of services by 
As provided in section 162, an activity        for all other returns, your SSTB is treated as   persons who broadcast video or audio of 
qualifies as a trade or business if your       a qualified trade or business, and thus may      athletic events to the public;
primary purpose for engaging in the activity   generate income eligible for the QBI             • Financial services, including persons 
is for income or profit and you’re involved in deduction.                                       managing clients’ wealth, advising clients on 
the activity with continuity and regularity.     Exception 2: If your 2022 taxable income       finances, developing retirement plans, 
If you own an interest in a pass-through       before the QBI deduction is more than            developing wealth transition plans, providing 
entity, the trade or business determination is $340,100 but not more than $440,100 if           advisory and other similar services regarding 
made at the entity level. Material             married filing jointly, $170,050 and $220,050    valuations, mergers, acquisitions, 
participation under section 469 isn’t required for all other returns, an applicable             dispositions, restructurings (including in title 
to qualify for the QBI deduction. Eligible     percentage of your SSTB is treated as a          11 or similar cases), and raising financial 
taxpayers with income from a trade or          qualified trade or business, you must            capital by underwriting, or acting as a client’s 
business may be entitled to the QBI            complete Schedule A (Form 8995-A).               agent in the issuance of securities and 
deduction if they otherwise satisfy the          An SSTB is any trade or business               similar services. This includes services 
requirements of section 199A.                  providing services in the fields of:             provided by financial advisors, investment 
The ownership and rental of real property      • Health, including physicians, pharmacists,     bankers, wealth planners, retirement 
may constitute a trade or business if it meets nurses, dentists, veterinarians, physical        advisors, and other similar professionals. 
the standard described above. Also,            therapists, psychologists, and other similar     However, it excludes taking deposits or 
Revenue Procedure 2019-38 provides a safe      healthcare professionals. However, it            making loans, but does include arranging 
harbor under which a rental real estate        excludes services not directly related to a      lending transactions between a lender and 
enterprise will be treated as a trade or       medical services field, such as the operation    borrower;
business for purposes of the QBI deduction.    of health clubs or spas; payment processing;     • Brokerage services, including persons 
Rental real estate that doesn’t meet the       or the research, testing, manufacture, and       who arrange transactions between a buyer 
requirements of the safe harbor may still be   sale of pharmaceuticals or medical devices;      and a seller of securities for a commission or 
treated as a trade or business for purposes    • Law, including lawyers, paralegals, legal      fee such as stock brokers and other similar 
of the QBI deduction if it is a section 162    arbitrators, mediators, and similar              professionals. However, it excludes services 
trade or business.                             professionals. However, it excludes services     provided by real estate agents and brokers, 
Also, the rental or licensing of property to   that don’t require skills unique to the field of or insurance agents and brokers;
a commonly controlled trade or business        law such as services by printers, delivery       • Investing and investment management, 
operated by an individual or a pass-through    services, or stenography services;               including persons providing, for a fee, 
entity is considered a trade or business       • Accounting, including accountants,             investing, asset management, or investment 
under section 199A.                            enrolled agents, return preparers, financial     management services, including providing 
                                               auditors, and similar professionals;             advice on buying and selling investments. 
Services performed as an employee ex-          • Actuarial science, including actuaries, and    However, it excludes the service of directly 
cluded from qualified trades or business-      similar professionals;                           managing real property;
es. The trade or business of performing        • Performing arts, including actors, singers,    • Trading, including persons who trade in 
services as an employee isn’t a trade or       musicians, entertainers, directors, and          securities (as defined in section 475(c)(2)), 
business for purposes of section 199A.         similar professionals. However, it excludes      commodities (as defined in section 475(e)
Therefore, any amounts reported on Form        services that don’t require skills unique to the (2)), or partnership interests;
W-2, box 1, other than amounts reported in     creation of performing arts, such as the         • Dealing securities (as defined in section 
box 1, if “Statutory Employee” on Form W-2,    maintenance and operation of equipment or        475(c)(2)), commodities (as defined in 
box 13, is checked, aren’t QBI. If you were    facilities for use in the performing arts or the section 475(e)(2)), or partnership interests; 
previously an employee of a business and       provision of services by persons who             and
continue to provide substantially the same     broadcast video or audio of performing arts      • Any trade or business where the principal 
services to that business after you’re no      to the public;                                   asset is the reputation or skill of one or more 
longer treated as an employee, there is a      • Consulting, including persons providing        of its employees or owners, as demonstrated 
presumption that you’re providing services     clients with professional advice and counsel     by:
as an employee for purposes of section         to assist in achieving goals and solving            – Receiving fees, compensation, or 
199A for the 3-year period after ceasing to    problems, and persons providing advice and          other income for endorsing products or 
be an employee. You may rebut this             counsel regarding advocacy with the                 services;
presumption on notice from the IRS by          intention of influencing decisions made by a        – Licensing or receiving fees, 
providing records such as contracts or         government or governmental agency, and              compensation or other income for the 
partnership agreements that corroborate        lobbyists attempting to influence legislators       use of an individual’s image, likeness, 
your status as a nonemployee. See Pub.         and other government officials on behalf of a       name, signature, voice, trademark, or 
15-A, Employer’s Supplemental Tax Guide,       client, and other similar professionals.            any other symbols associated with the 
and Pub. 1779, Independent Contractor or       However, it excludes the performance of             individual’s identity; or
Employee.                                      services other than advice or counsel, such         – Receiving fees, compensation, or 
                                               as sales or the provision of training and           other income for appearing at an event 

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or on radio, television, or another media (Form 8995-A) before starting Part I of Form Losses or deductions from a qualified
format. 8995-A. trade or business that are suspended by
De minimis rule 1. If your gross receipts Your aggregations must be reported other provisions of the Internal Revenue
from a trade or business are $25 million or consistently for all subsequent years, unless Code are not qualified losses or deductions
less and less than 10% of the gross receipts there is a significant change in facts and and therefore, are not included in your QBI
are from the performance of services in a circumstances that disqualify the for the year. Such Code provisions include,
specified service field, then your trade or aggregation. Schedule B (Form 8995-A) but aren’t limited to, sections 163(j), 179,
business isn’t considered an SSTB, and thus must be completed each year to show your 461(l), 465, 469, 704(d), and 1366(d).
may generate income eligible for the QBI trade or business aggregation(s) and must Instead, qualified losses and deductions are
deduction for the tax year, regardless of your include any aggregation of an RPE in which taken into account in the tax year they’re
taxable income. you hold a direct or indirect interest. Failure included in calculating your taxable income.
De minimis rule 2. If your gross receipts to disclose such aggregated trades or When losses or deductions are
from the trade or business are more than $25 businesses may cause them to be suspended, you must determine the qualified
million and less than 5% of the gross disaggregated. portion of the losses or deductions that must
receipts are from the performance of be included in QBI in subsequent years
services, then your trade or business isn’t Note. You must combine the QBI, W-2 when allowed in calculating your taxable
considered an SSTB, and thus may generate wages, and UBIA of qualified property for all income. In general, losses and deductions
income eligible for the QBI deduction for the aggregated trades or businesses, for incurred prior to 2018 are not qualified losses
tax year, regardless of your taxable income. purposes of applying the W-2 wage and or deductions and are not included in QBI in
UBIA of qualified property limitations. the year they are included in calculating
De minimis rule 3. If your trade or taxable income.
business provides services or property to an Determining your QBI. Your QBI includes
SSTB and there is 50% or more common qualified items of income, gain, deduction, If a loss or deduction is partially
ownership of the trades or businesses, that and loss from your trades or businesses that suspended, only the portion of the allowed
portion of the business that provides are effectively connected with the conduct of loss or deduction attributable to QBI must be
services or property to the SSTB is treated a trade or business in the United States. This considered when determining QBI from the
as a separate SSTB concerning the common includes qualified items from partnerships trade or business in the year the loss or
owners. (other than PTPs), S corporations, sole deduction is incurred. The portion of the
proprietorships, and certain estates and allowed loss or deduction attributable to QBI
Aggregation. If you’re engaged in more trusts that are allowed in calculating your is determined by first calculating the
than one trade or business, each trade or taxable income for the year. percentage of the total loss attributable to
business is a separate trade or business for QBI by dividing the portion of the total loss
purposes of applying the W-2 wage limitation To figure the total amount of QBI, you
or UBIA of qualified property limitation, must consider all items that are attributable attributable to QBI by the overall total loss.
discussed later. However, you may choose to the trade or business. This includes, but The allowed loss or deduction is then
to aggregate multiple trades or businesses isn’t limited to, unreimbursed partnership multiplied by this percentage to determine
into a single trade or business for purposes expenses, business interest expense, the portion of the allowed loss or deduction
of applying the limitations if you meet the deductible part of self-employment tax, attributable to QBI.
following requirements. self-employment health insurance deduction, If your trade or business is an SSTB,
and contributions to qualified retirement whether the trade or business is a qualified
1. You or a group of persons directly or plans. QBI doesn’t include any of the trade or business is determined based on
indirectly own 50% or more of each trade or following. your taxable income in the year the loss or
business for a majority of the tax year, • Items that aren’t properly includible in deduction is incurred. If your taxable income
including the last day of the tax year, and all income. is within the phase-in range in that year, you
trades or businesses use the same tax year • Income that isn’t effectively connected must determine and apply the applicable
end. with the conduct of a trade or business within percentage in the year the loss or deduction
2. None of the trades or businesses are the United States (go to IRS.gov/ECI). was incurred to determine the qualified
an SSTB. • Wage income (except “Statutory portion of the suspended loss or deduction.
3. The trades or businesses meet at Employees” where Form W-2, box 13, is Losses and deductions retain their status
least two of the following factors. checked). as either qualified or non-qualified from year
• Amounts received as reasonable to year while suspended. Therefore, you
a. They provide products, property, or compensation from an S corporation. must track each category of loss or
services that are the same or that are • Amounts received as guaranteed deduction until the loss or deduction is no
customarily offered together. payments. longer suspended. For an example of a
b. They share facilities or share • Amounts received as payments by a reasonable method to track and compute the
significant centralized business elements partner for services other than in a capacity amount of previously disallowed losses or
such as personnel, accounting, legal, as a partner. deductions to be included in your QBI
manufacturing, purchasing, human • Items treated as capital gains or losses deduction calculation in the year allowed,
resources, or information technology under any provision of the Code. see Tracking Losses or Deductions
resources. • Dividends and dividend equivalents. Suspended by Other Provisions, later.
c. They are operated in coordination • Interest income not properly allocable to a When losses or deductions previously
with, or reliance upon, one or more of the trade or business. suspended by other Code provisions are
businesses in the aggregated group. • Commodities transactions or foreign allowed in calculating taxable income, the
currency gains or losses. qualified portion of the loss or deduction
If a relevant pass-through entity (RPE) • Income, loss, or deductions from notional allowed under each provision is treated as a
aggregates multiple trades or businesses, principal contracts. qualified net loss carryforward from a
you must attach the RPE’s aggregations to • Annuities (unless received in connection separate trade or business when calculating
your Schedule B (Form 8995-A). You may with the trade or business). the current year’s QBI deduction. See Line 3.
not separate the trades or businesses • Qualified REIT dividends.
aggregated by the RPE, but you may add • Qualified PTP income. Any qualified loss or deduction from an
additional trades or businesses to the See the QBI Flow Chart, later, to figure if an SSTB allowed in calculating taxable income
aggregation, assuming the rules above are item of income, gain, deduction, or loss is isn’t included on the Schedule A (Form
met. If you choose to aggregate multiple included in QBI. 8995-A) as the applicable percentage was
trades or businesses, complete Schedule B previously determined and applied in the

Instructions for Form 8995-A (2022) -3-

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

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For qualified replacement property range or completely excluded from qualified Schedule A (Form
acquired in a section 1031 exchange that’s PTP income if your taxable income is above
of a like-kind to the qualified relinquished the phase-in range. See Schedule A (Form 8995-A)—Specified Service
property, or for qualified replacement 8995-A) Specified Service Trades or Trades or Businesses
property acquired in a section 1033 Businesses, later. Complete Schedule A only if your trade or
involuntary conversion that’s similar or business is a SSTB and your taxable income
related in service or use to the qualified Coordination With Other is more than $170,050 but not $220,050
converted property, the UBIA of the qualified ($340,100 and $440,100 if married filing
replacement property is the same as the Code Sections jointly).
UBIA of the qualified property exchanged, A net operating loss under section 172 is If your taxable income isn't more than
converted, decreased by excess boot, or generally figured without the QBI deduction, $170,050 ($340,100 if married filing jointly)
increased by the amount of money paid or meaning the QBI deduction can’t create or and you're not a patron of an agricultural or
the fair market value of property transferred increase the net operating loss. However, an horticultural cooperative, don't file Form
by the taxpayer that isn’t of a like-kind or excess business loss under section 461(l) is 8995-A; instead, file Form 8995, Qualified
similar or related in service or use. treated as a net operating loss carryforward Business Income Deduction Simplified
Generally, replacement property retains to the following tax year and is taken into Computation. Otherwise, complete
the same placed-in-service date as that of account for purposes of computing QBI in Schedule D (Form 8995-A) before beginning
the relinquished property. However, for the the subsequent tax year in which it is Schedule A.
portion of the replacement property’s UBIA deducted.
that exceeds the relinquished property’s If your taxable income is more than
UBIA, that portion is treated as separate Alternative minimum tax. The QBI $220,050 ($440,100 if married filing jointly),
qualified property placed in service on the deduction used to determine regular tax is your SSTB doesn't qualify for the deduction.
date on which the replacement property is also used to determine alternative minimum Schedule A (Form 8995-A), Part II, should
first placed in service. taxable income. be used for SSTBs that are PTPs, and Part I
Generally, property received in a Net earnings from self-employment should be used for all other SSTBs.
nonrecognition transaction (section 332, aren’t reduced by the QBI deduction when See SSTBs excluded from your qualified
351, 361, 721, or 731) retains the same computing self-employment tax. trades or businesses, earlier.
UBIA and placed-in-service date as that of Net investment income isn’t reduced by Lines 2 and 16. Enter your QBI or Qualified
the transferor. However, for the portion of the the QBI deduction when computing net PTP income for each SSTB, as applicable.
transferee’s UBIA that exceeds the investment income tax.
transferor’s UBIA, that portion is treated as Lines 5 and 18. See Taxable income
separate qualified property placed in service Puerto Rico. For purposes of determining before qualified business income deduction,
on the date of the transfer. QBI, the United States includes Puerto Rico earlier.
for taxpayers who have taxable income from
Property acquired within 60 days of the sources within Puerto Rico that are subject Schedule B (Form
year end that’s disposed of within 120 days to tax under section 1. Further, W-2 wages 8995-A)—Aggregation of
without being used by the trade or business are figured by including W-2 wages paid for
for at least 45 days is generally not qualified services performed in Puerto Rico without Business Operations
property. regard to section 3401(a)(8). If you qualify and choose to aggregate
multiple trades or businesses into a single
Determining Your Specific Instructions trade or business, you must complete
Schedule B before starting Part I.
REIT/PTP Component You may need to complete Schedule A, B,
Your qualified REIT/PTP component equals C, and/or D, as applicable, prior to starting Line 3(c). Enter your QBI for each separate
20% of your qualified REIT dividends and Part I of the form. trade or business.
qualified PTP income or loss (including your
share of qualified REIT dividends and Taxable income before qualified busi- Line 4. If any of your aggregations have a
qualified PTP income or loss from RPEs). ness income deduction. Form 8995-A, qualified business loss for the current year or
Part III, Part IV, and Schedule A (Form you have a qualified business net loss
Qualified REIT dividends include any 8995-A) each ask for your taxable income carryforward from prior years, you must
dividend you received from a REIT held for figured without regard to the QBI deduction. complete Schedule C (Form 8995-A) before
more than 45 days and for which the Enter your taxable income figured before any starting Part I.
payment isn’t obligated to someone else and QBI deduction, computed as follows. If none of your aggregations have a
that isn’t a capital gain dividend under • Form 1040, 1040-SR, or 1040-NR filers: qualified business loss in the current year
section 857(b)(3) and isn’t a qualified Form 1040, 1040-SR, or 1040-NR, line 11, and you don’t have a qualified business loss
dividend under section 1(h)(11). Plus, your minus Form 1040, 1040-SR, or 1040-NR, carryforward from prior years, enter the total
qualified REIT dividends include those line 12. amounts on the appropriate lines of Form
received from a regulated investment • Form 1041 filers: Form 1041, line 23, plus 8995-A, Part II.
company (RIC). Form 1041, line 20.
Qualified PTP income/(loss) includes • Form 1041-N filers: Form 1041-N, line 13, Schedule C (Form
your share of qualified items of income, gain, plus qualified income deduction reported on 8995-A)—Loss Netting and
deduction, and loss from a PTP. It may also Form 1041-N, line 9.
include gain or loss recognized on the • Form 990-T filers: Form 990-T, Part I, Carryforward
disposition of your PTP interest that isn’t line 11, plus qualified business income If any of your trades, businesses, or
treated as a capital gain or loss. It doesn’t deduction reported on Form 990-T, Part I, aggregations have a qualified business loss
include any loss or deduction disallowed in line 9. for the current year or you have a qualified
determining your taxable income for the • S-corporation portion of an ESBT filer: business net loss carryforward from prior
year. Qualified REIT dividends are reported ESBT Tax Worksheet, line 13, plus ESBT years, you must complete Schedule C (Form
to you on Form 1099-DIV, Dividends and Tax Worksheet, line 11. 8995-A) before starting Part I. This includes
Distributions, box 5, Section 199A dividends. prior year loss carryforwards even if the loss
was unreported or the trade or business that
Note. PTP income generated by an SSTB generated the loss is no longer in existence.
may be limited to the applicable percentage Schedule C (Form 8995-A) offsets your
if your taxable income is within the phase-in trade or business that generated a qualified

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business loss against the QBI from your Schedule D (Form the owner's name, and tax identification
other trades or businesses. The qualified number.
business loss must be apportioned among 8995-A)—Special Rules for
all your trades or businesses with QBI in Patrons of Agricultural or Part II—Determine Your
proportion to their QBI. Horticultural Cooperatives Adjusted Qualified Business
Note. The line items for this schedule are You must complete Schedule D (Form Income
computed out of order: first figure line 1, 8995-A) if you’re a patron in a specified You must complete Part II if you have QBI
column (a); then skip to lines 2 through 5; agricultural or horticultural cooperative and from a qualified trade, business, or
and come back to line 1, columns (b) and (c). are claiming a QBI deduction in relation to aggregation.
your trade or business conducted with the
Line 1, column (a). If you aggregated cooperative. A specified agricultural or Line 2. If you have four or more trades or
multiple trades or businesses into a single horticultural cooperative is a cooperative that businesses, attach a statement with the
business on Schedule B (Form 8995-A), markets or is engaged in the manufacturing, information for Parts I, II, and III, as
enter the aggregation group name, production, growth, or extraction of any applicable. See Schedule C (Form
Aggregation 1, 2, 3, etc., instead of entering agricultural or horticultural products to which 8995-A)—Loss Netting and Carryforward,
the business name along with the Part I of subchapter T applies. See section earlier.
aggregated trade’s or business’s QBI. 199A(g)(3). Also see TD 9947. Line 4. Enter your W-2 wages from the
Line 2. This includes the amount reported in Line 2. Input the QBI for the trade or trade, business, or aggregation.
the prior year on Schedule C (Form 8995-A), business as properly allocable to qualified
line 6, or if the simplified worksheet was payments received from the cooperative. Note. If the QBI on line 2, for the trade,
previously used, Form 8995, line 16, Qualified payments include patronage business, or aggregation, is zero, then the
including prior year loss carryforwards even dividends and per-unit retains allocations. amount reported on line 4, for that trade or
if the loss was unreported or the trade or business, must also be zero.
business that generated the loss is no longer Line 4. Enter the portion of W-2 wages from
in existence. This also includes the QBI Form 8995-A, line 4, that are allocable to the Line 7. Enter your share of the UBIA for all
portion of losses or deductions suspended qualified payments. qualified property for the trade or business.
from use in calculating taxable income in the Part I—Trade, Business, and Note. If the QBI on line 2, for the trade,
year generated that are included in taxable business, or aggregation, is zero, then the
income in the current year. See Determining Aggregation Information amount reported on line 7, for that trade or
your QBI, earlier, and QBI Loss Tracking You must complete Part I if you have QBI business, must also be zero.
Worksheet, later. from a qualified trade, business, or
aggregation. If you don’t have QBI, and only Line 14. Report the amount from
Line 1, column (b). Apportion the amount have REIT, PTP, and/or a domestic Schedule D (Form 8995-A), line 6, if any.
from line 5 among all your trades or production activities deduction (DPAD), skip Patrons of agricultural or horticultural
businesses with QBI, but not loss, in Parts I through III and complete Part IV. cooperatives are required to reduce their
proportion to their QBI. Before you begin completing Part I, QBI component by the lesser of:
Line 1, column (c). Enter this amount on determine if you need to complete • 9% of QBI allocable to qualified payments
the corresponding line on Form 8995-A, Part Schedule A, B, or C by answering the from a specified cooperative, or
II. following questions. • 50% of W-2 wages allocable to qualified
payments.
1. Do you have an SSTB? If yes, see
Note. If the adjusted QBI from the trade or Schedule A (Form 8995-A) Specified Service If you’re a patron of an agricultural or
business is zero or less after the reduction Trades or Businesses, earlier. horticultural cooperative, complete
for loss netting, then the amount reported for Schedule D (Form 8995-A). See Schedule D
W-2 wages and UBIA of qualified property 2. Are you choosing to aggregate (Form 8995-A)—Special Rules for Patrons of
must be zero for that trade or business, as multiple trades or businesses into a single Agricultural or Horticultural Cooperatives,
the W-2 wages and UBIA of qualified trade or business? If yes, complete earlier.
property from that trade or business aren’t Schedule B (Form 8995-A) before starting
allowed in computing your QBI limitations. Part I. Line 15. Subtract the patron reduction on
3. Did any of your trades, businesses, or line 14 from the amount on line 13. If zero or
Line 6. The amount reported on this line aggregations have QBI for the year or do you less, enter zero.
must be reported in the next tax year on have a qualified business loss carryforward Line 16. Add all amounts reported on
Schedule C (Form 8995-A), line 2, or Form from prior years? If yes, complete line 15. If there are four or more trades or
8995, line 3, Qualified business net (loss) Schedule C (Form 8995-A) before starting businesses, include line 15 amounts from all
carryforward from prior years, as applicable. Part I. trades or businesses and complete line 16
This amount will offset QBI in subsequent tax only on the first page. Leave line 16 blank on
years regardless of whether it is reported Line 1. If you aggregated multiple trades or the attached statements described in the
and whether the trade or business that businesses into a single business on line 2 instructions.
generated the loss is still in existence. This Schedule B (Form 8995-A), enter the
carryforward doesn’t affect the deductibility aggregation group name, for example, Part III—Phased-in Reduction
of the loss for purposes of any other Aggregation 1, 2, 3, etc., instead of entering Complete Part III only if your taxable income
provisions of the Code. the business name, check the box under is more than $170,050 but not $220,050
1(c), and leave line 1(d) blank.
Note. If you have an overall qualified ($340,100 and $440,100 if married filing
business net loss carryforward for the year, Enter on line 1(d) the employer jointly) and line 10 is less than line 3.
you don’t qualify for a QBI deduction in the identification number (EIN). If you don’t have Otherwise, skip Part III.
current year unless you have qualified REIT an EIN, enter your social security number Line 20. See Taxable income before
dividends or qualified PTP income. (SSN) or individual taxpayer identification qualified business income deduction, earlier.
number (ITIN). If you’re the sole owner of a
limited liability company (LLC) that isn’t
treated as a separate entity for federal
income tax purposes, enter the EIN given to
the LLC. If you don’t have such an EIN, enter

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Part IV—Determine Your                           Schedule D (Form 1040), your net capital         • Form 990-T filers who are trusts, 
                                                 gain is the amount reported on Form 1040,        Schedule D (Form 1041), the smaller of 
Qualified Business Income                        1040-SR, or 1040-NR, line 7. If you file         line 18(a)(2) or 19(2), unless either line 18(a)
Deduction                                        Schedule D (Form 1040), your net capital         (2) or 19(2) is zero or less, in which case the 
If you’re claiming a QBI deduction, you must     gain is the smaller of Schedule D (Form          net capital gain for purposes of section 199A 
complete Part IV.                                1040), line 15 or 16, unless line 15 or 16 is    is zero.
                                                 zero or less, in which case nothing is added     • S-corporation portion of an ESBT, your 
Line 28. If the net amount is a loss, enter as   to your qualified dividends.                     ESBT Tax Worksheet, line 2b, plus the 
a negative number.                               • Form 1041 filers, your qualified dividends     smaller of your ESBT’s Schedule D (Form 
  Any negative amount will be carried            allocable to estates and trusts on line 2b(2).   1041), line 18(a)(2), or line 19(2), is zero or 
forward to the next year. This carryforward      For estates or trusts required to file           less, in which case nothing is added to your 
doesn’t affect the deductibility of the loss for Schedule D (Form 1041), add the qualified        qualified dividends.
purposes of any other provisions of the          dividends to the smaller of Schedule D (Form 
Code.                                            1041), line 18a(2), or line 19(2), unless either Line 39. Enter the amount from line 39 on 
                                                 line 18a(2) or 19(2) is zero or less, in which   Form 1040 or 1040-SR, line 13; Form 
Line 33. See Taxable income before               case nothing is added to your qualified          1040-NR, line 13a; Form 1041, line 20; Form 
qualified business income deduction, earlier.    dividends.                                       1041-N, line 9; Form 990-T, line 9; 
Line 34. Enter the amount from your tax          • Form 1041-N filers, your qualified             S-corporation portion of an ESBT, line 11.
return as follows.                               dividends line 2b, plus the smaller of Form      Line 40. If the sum of lines 28 and 29 result 
• Form 1040, 1040-SR, or 1040-NR filers,         1041-N, Schedule D, lines 10 or 11, unless       in a loss (negative number), the loss must be 
your qualified dividends on line 3a, plus your   line 10 or 11 is zero or less, in which case     carried forward to next year.
net capital gain. If you’re not required to file nothing is added to your qualified dividends.

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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 income (loss) from a qualied PTP? If “Yes,” it’s not
QBI, but it’s included in the REIT/PTP component of the QBI Yes
computation. 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).

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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

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

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Steps 5(a) and (b), multiply the remaining   F, row 3, must tie to the amount reported in     columns G and K for the corresponding year. 
losses (after Steps 5(a) and (b)), up to the column G(ii), row 6, etc.                        See Row 7 below.
sum of the remaining suspended losses 
reported in column H, row 3, and column L,   Column H. Remaining suspended losses.            Row 7. Allocation of allowed losses limi-
row 3, by column B, row 3, and add it to any For each row, take the amount in column E        ted by other Code sections. To allocate 
amount already included in column J, row 3.  less the amounts utilized in all columns G(i),   the allowed losses limited by other Code 
                                             G(ii), G(iii), and G(iv). This amount can't be   sections between QBI and Non-QBI, start 
4. Then, multiply the remaining losses       more than zero.                                  with QBI for the 2018 row. Divide column 
(after Steps 5(a) and (b)), up to the sum of                                                  K(i), row 6, by the sum of column K(i), row 6, 
the remaining suspended losses reported in   Column L. Remaining suspended losses.            and column G(i), row 6, multiplied by column 
column H, row 3, and column L, row 3, by     For each row, take the amount in column I        D, row 2, and enter this amount in column 
100% less the amount in column B, row 3,     less the amounts utilized in all columns K(i),   K(i), row 7. Written as a formula: column K(i), 
and add it to any amount already included in K(ii), K(iii), and K(iv). This amount can't be   row 7= column D, row 2 x (column K(i), row 
column F, row 3.                             more than zero.                                  6÷ (column K(i), row 6+ column G(i), row 6)).
                                             Column D. Allowed losses limited by oth-         Next, compute the amount for Non-QBI 
Step 6. Complete the instructions for        er Code sections. When a prior year              for the 2018 row. Divide column G(i), row 6, 
columns G, K, H, and L for rows 1 through 3. suspended loss allowed under one Code            by the sum of column G(i), row 6, and 
                                             section is subsequently limited by another       column K(i), row 6, multiplied by column D, 
Prior Year Suspended Losses                  Code section, this loss shouldn't be included    row 2, and enter this amount in column G(i), 
Allowed in 2020 and Beyond                   in the QBI calculation until the loss is allowed row 7. Written as a formula: column K(i), row 
                                             in the computation of taxable income.            7= column D, row 2 x (column G(i), row 6 ÷ 
                                             Instead, that loss is added to the total         (column G(i), row 6 + column K(i), row 6)).
Repeat Step 4 through Step 6 and adjust as   suspended losses in the year of 
necessary for any prior year suspended       disallowance under the new limiting Code         Continue the computation for columns 
losses allowed in column C, row 4, and each  section for continuation of its suspension.      K(ii) and G(ii), K(iii) and G(iii), and then for 
row thereafter, as applicable.               This column along with row 7, addresses          columns K(iv) and G(iv), except multiply the 
                                             how to account for such losses.                  percentage times the amount in column D, 
Additional year rows and columns may be                                                       row 3, for 2019, column D, row 4, for 2020, 
added as needed in future years.             In column D, enter the amount of any             and column D, row 5, for 2021, respectively.
                                             prior year suspended losses allowed under 
Columns G and K. Utilized “20XX.”     Use    this Code section, but subsequently              Row 8. Total prior year suspended los-
these columns to show how the allocated      disallowed under another Code section on         ses allowed that must be included in 
prior year suspended losses allowed in       the row for the year the loss was allowed        QBI. The amounts reported in columns K(i), 
columns F and J are utilized each year. For  under this Code section. These amounts will      K(ii), K(iii), and/or K(iv) for row 8, equal the 
example, the loss reported in column F, row  be allocated between Non-QBI and QBI in          loss amount that must be included in your 
2, must tie to the amount reported in column                                                  current year QBI, respectively, for each year, 
G(i), row 6, and the loss reported in column                                                  as a loss from a separate trade or business.

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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.     Total
Part II  Non-QBI Suspended and Allowed Losses
Allocable to Non-QBI
            E. Suspended     F. Allocated prior  G(i). Utilized  G(ii). Utilized  G(iii). Utilized  G(iv). Utilized  G(v). Utilized H. Remaining 
                 losses      year suspended            2018 2019              2020 2021      2022                                   suspended 
                             losses allowed                                                                                         losses
1. Pre-2018
2.     2018
3.     2019
4.     2020
5.     2021
6.     2022
7.     Total
8. Allocation  of  allowed  losses  limited  by  other 
   Code sections .  .   .  . . .    . . .
Part III QBI Suspended and Allowed Losses
Allocable to QBI
            I. Suspended     J. Allocated prior  K(i). Utilized  K(ii). Utilized  K(iii). Utilized  K(iv). Utilized  K(v). Utilized L. Remaining 
                 losses      year suspended            2018 2019              2020 2021      2022                                   suspended 
                             losses allowed                                                                                         losses
1. Pre-2018
2.     2018
3.     2019
4.     2020
5.     2021
6.     2022
7.     Total
8. Allocation  of  allowed  losses  limited  by  other 
   Code sections .  .   .  . . .    . . .
9. Total prior year suspended losses allowed that 
   must be included in QBI . . .    . . .   .

Instructions for Form 8995-A (2022)                         -11-

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sending
8995 4 hrs., 43 min. 51 min. 2 hrs., 6min.
8995-A 7 hrs., 52 min. 1 hr., 53 min. 6 hrs., 6 min.
Schedule A (8895-A) 3 hrs., 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 (2022)

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