Support CenterHow do I calculate Reduction for loss netting on a Form 8995-A
The amount on schedule C, Line 1, column (b) is based on the amount on line Schedule C, line 5. According to the IRS Apportion the amount from line 5 among all your trades or businesseswith QBI, but not loss, in proportion to their QBI.
The amount on Form 8995-A, Schedule C, line 1, column B is calculated based on the total loss amount allocated to each business based on the ratio of the trade or business income for each qualifying trade or business to the total trade or business income on the return
https://www.irs.gov/instructions/i8995a
Schedule C (Form 8995-A)Loss Netting and Carryforward
If any of your trades, businesses, or 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. This includes prior year loss carryforwards even if the loss was unreported or the trade or business that generated the loss is no longer in existence.
Schedule C (Form 8995-A) offsets your trade or business that generated a qualified business loss against the QBI from your other trades or businesses. The qualified business loss must be apportioned among all your trades or businesses with QBI in proportion to their QBI.
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