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Formularul 8995-A Instrucţiuni

Instrucțiuni pentru formularul 8995-A, deducere pentru venitul de afaceri calificat

Rev. 2023

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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  
otherwise noted.  
Estates and trusts. To the extent that a grantor or another person  
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  
section 199A items had been received directly by the owner.  
Generally, in the case of a non-grantor trust or estate, the trust or  
estate may either claim the QBI deduction or provide information to  
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  
estate's or trust's distributable net income (DNI) for the tax year  
distributed (or required to be distributed) to the beneficiary or  
retained by the estate or trust. If the estate or trust has no DNI for the  
tax year, section 199A items are allocated entirely to the estate or  
trust.  
Estates and trusts may compute their own QBI deduction to the  
extent section 199A items are allocated to the estate or trust.  
However, section 199A items allocated to beneficiaries aren’t  
includible in the estate’s or trust’s QBI deduction computation. See  
the Instructions for Form 1041, U.S. Income Tax Return for Estates  
and Trusts.  
Future Developments  
For the latest information about developments related to Form  
8995-A and its instructions, such as legislation enacted after they  
were published, go to IRS.gov/Form8995A.  
General Instructions  
Purpose of Form  
Use Form 8995-A to figure your qualified business income (QBI)  
deduction. Include the following schedules (their specific instructions  
are shown later), as appropriate:  
Schedule A (Form 8995-A), Specified Service Trades or  
Businesses  
Schedule B (Form 8995-A), Aggregation of Business Operations  
Schedule C (Form 8995-A), Loss Netting and Carryforward  
Schedule D (Form 8995-A), Special Rules for Patrons of  
Agricultural or Horticultural Cooperatives  
Electing Small Business Trusts (ESBT). An ESBT is required to  
compute the QBI deduction separately for the S and non-S portions  
of the trust. If applicable, the Form 8995-A used to compute the S  
portion’s QBI deduction must be attached as a PDF to the ESBT Tax  
Worksheet filed with Form 1041, and the trust must indicate that the  
information is applicable to the S portion only, by writing “ESBT” in  
the top margin of the Form 8995-A. See the Instructions for Form  
1041.  
In general, the amount of your QBI deduction equals your QBI  
component plus your qualified real estate investment trust (REIT)  
and qualified publicly traded partnership (PTP) component  
(REIT/PTP component). However, the deduction is limited to the  
lesser of this amount or 20% of your taxable income, calculated  
before the QBI deduction, minus your net capital gain (increased by  
any qualified dividends). Depending on your taxable income, your  
QBI component may also be limited based on the type of trade or  
business, W-2 wages paid by that business, and Unadjusted Basis  
Immediately after Acquisition (UBIA) of qualified property held by the  
business.  
Determining Your QBI Deduction  
Determine your QBI component. To figure your QBI deduction,  
you must first determine your QBI component. Your QBI component  
is generally 20% of your QBI from your domestic trades or  
businesses. However, if your taxable income (before the QBI  
deduction) exceeds the threshold ($364,200 if married filing jointly,  
and $182,100 for all other returns), your QBI for each of your trades  
or businesses may be partially or fully reduced to the greater of 50%  
of W-2 wages paid by the qualified trade or business, or 25% of W-2  
wages plus 2.5% of the UBIA of qualified property from the qualified  
trade or business. The partial or full reduction to QBI is determined  
by your taxable income. If your taxable income (before the QBI  
deduction) is:  
Who Can Take the Deduction  
Individuals and eligible estates and trusts use Form 8995-A to figure  
the QBI deduction if:  
You have QBI, qualified REIT dividends, or qualified PTP income  
or loss; and  
Your 2023 taxable income before your QBI deduction is more than  
$364,200 married filing jointly, and $182,100 for all other returns; or  
You’re a patron in a specified agricultural or horticultural  
cooperative.  
At or below the threshold, you don’t need to reduce your QBI;  
Above the threshold but below the phase-in range (more than  
Otherwise, use Form 8995, Qualified Business Income  
Deduction Simplified Computation, to figure your QBI deduction.  
$364,200 and $464,200 if married filing jointly, and $182,100 and  
$232,100 for all other returns), the reduction is phased in; or  
S corporations and partnerships. S corporations and  
partnerships don’t file Form 8995-A because they’re not eligible for  
the deduction. Instead, S corporations and partnerships must pass  
through to their shareholders or partners the necessary information  
on an attachment to Schedule K-1.  
See the Instructions for Form 1120-S, U.S. Income Tax Return for  
an S Corporation, and Form 1065, U.S. Return of Partnership  
Income.  
Above the threshold and phase-in range, the full reduction  
applies.  
Also, if you’re a patron of an agricultural or horticultural  
cooperative, you must reduce your cooperative QBI by the lesser of:  
9% of the QBI allocable to qualified payments, or  
50% of W-2 wages from the trade or business allocable to the  
qualified payments.  
Determining your qualified trades or businesses. Your qualified  
trades and businesses generally include your trades or businesses  
for which you’re allowed a deduction for ordinary and necessary  
business expenses under section 162. However, trades or  
Cooperatives. Cooperatives don’t file Form 8995-A because  
they’re not eligible for the deduction. Instead, cooperatives must  
provide the necessary information to their patrons on Form  
1099-PATR or an attachment to help eligible patrons figure their  
deduction. Certain agricultural or horticultural cooperatives may  
qualify for a deduction under section 199A(g).  
businesses conducted by corporations and the performance of  
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  
trades or businesses for taxpayers with taxable income, before the  
QBI deduction, above the threshold and phased-in range.  
As provided in section 162, an activity qualifies as a trade or  
business if your primary purpose for engaging in the activity is for  
income or profit and you’re involved in the activity with continuity and  
regularity.  
If you own an interest in a pass-through entity, the trade or  
business determination is made at the entity level. Material  
participation under section 469 isn’t required to qualify for the QBI  
deduction. Eligible taxpayers with income from a trade or business  
may be entitled to the QBI deduction if they otherwise satisfy the  
requirements of section 199A.  
The ownership and rental of real property may constitute a trade  
or business if it meets the standard described above. Also, Revenue  
Procedure 2019-38 provides a safe harbor under which a rental real  
estate enterprise will be treated as a trade or business for purposes  
of the QBI deduction. Rental real estate that doesn’t meet the  
requirements of the safe harbor may still be treated as a trade or  
business for purposes of the QBI deduction if it is a section 162  
trade or business.  
Actuarial science, including actuaries, and similar professionals;  
Performing arts, including actors, singers, musicians,  
entertainers, directors, and similar professionals. However, it  
excludes services that don’t require skills unique to the creation of  
performing arts, such as the maintenance and operation of  
equipment or facilities for use in the performing arts or the provision  
of services by persons who broadcast video or audio of performing  
arts to the public;  
Consulting, including persons providing clients with professional  
advice and counsel to assist in achieving goals and solving  
problems, and persons providing advice and counsel regarding  
advocacy with the intention of influencing decisions made by a  
government or governmental agency, and lobbyists attempting to  
influence legislators and other government officials on behalf of a  
client, and other similar professionals. However, it excludes the  
performance of services other than advice or counsel, such as sales  
or the provision of training and educational courses. It also excludes  
consulting services embedded in or ancillary to the activities of a  
trade or business that isn’t an SSTB, if there is no separate payment  
for the consulting services;  
Athletics, including athletes, coaches, and team managers in  
sports such as baseball, basketball, football, soccer, hockey, martial  
arts, boxing, bowling, tennis, golf, skiing, snowboarding, track and  
field, billiards, racing, and other forms of athletic competition.  
However, it excludes services that don’t require skills unique to  
athletic competition, such as the maintenance and operation of  
equipment or facilities for use in athletic events or the provision of  
services by persons who broadcast video or audio of athletic events  
to the public;  
Also, the rental or licensing of property to a commonly controlled  
trade or business operated by an individual or a pass-through entity  
is considered a trade or business under section 199A.  
Services performed as an employee excluded from qualified  
trades or businesses. The trade or business of performing  
services as an employee isn’t a trade or business for purposes of  
section 199A. Therefore, any amounts reported on Form W-2, box 1,  
other than amounts reported in box 1, if “Statutory Employee” on  
Form W-2, box 13, is checked, aren’t QBI. If you were previously an  
employee of a business and continue to provide substantially the  
same services to that business after you’re no longer treated as an  
employee, there is a presumption that you’re providing services as  
an employee for purposes of section 199A for the 3-year period after  
ceasing to be an employee. You may rebut this presumption on  
notice from the IRS by providing records such as contracts or  
partnership agreements that corroborate your status as a  
Financial services, including persons managing clients’ wealth,  
advising clients on finances, developing retirement plans,  
developing wealth transition plans, providing advisory and other  
similar services regarding valuations, mergers, acquisitions,  
dispositions, restructurings (including in title 11 or similar cases),  
and raising financial capital by underwriting, or acting as a client’s  
agent in the issuance of securities and similar services. This  
includes services provided by financial advisors, investment  
bankers, wealth planners, retirement advisors, and other similar  
professionals. However, it excludes taking deposits or making loans,  
but does include arranging lending transactions between a lender  
and borrower;  
nonemployee. See Pub. 15-A, Employer’s Supplemental Tax Guide,  
and Pub. 1779, Independent Contractor or Employee.  
SSTBs excluded from your qualified trades or businesses.  
SSTBs are generally excluded from the definition of a qualified trade  
or business if the taxpayer's taxable income exceeds the threshold  
plus the phase-in range. Therefore, no QBI, W-2 wages, or UBIA of  
qualified property from the specified service trade or business are  
taken into account in figuring your QBI deduction. If the SSTB is  
conducted by your pass-through entity, the same limitation applies to  
the pass-through items.  
Exception 1: If your 2023 taxable income before the QBI  
deduction isn’t more than $364,200 if married filing jointly, and  
$182,100 for all other returns, your SSTB is treated as a qualified  
trade or business, and thus may generate income eligible for the QBI  
deduction.  
Brokerage services, including persons who arrange transactions  
between a buyer and a seller of securities for a commission or fee  
such as stock brokers and other similar professionals. However, it  
excludes services provided by real estate agents and brokers, or  
insurance agents and brokers;  
Investing and investment management, including persons  
providing, for a fee, investing, asset management, or investment  
management services, including providing advice on buying and  
selling investments. However, it excludes the service of directly  
managing real property;  
Trading, including persons who trade in securities (as defined in  
section 475(c)(2)), commodities (as defined in section 475(e)(2)), or  
partnership interests;  
Exception 2: If your 2023 taxable income before the QBI  
deduction is more than $364,200 but not more than $464,200 if  
married filing jointly, $182,100 and $232,100 for all other returns, an  
applicable percentage of your SSTB is treated as a qualified trade or  
business, you must complete Schedule A (Form 8995-A).  
Dealing securities (as defined in section 475(c)(2)), commodities  
(as defined in section 475(e)(2)), or partnership interests; and  
Any trade or business where the principal asset is the reputation  
or skill of one or more of its employees or owners, as demonstrated  
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  
the use of an individual’s image, likeness, name, signature,  
voice, trademark, or any other symbols associated with the  
individual’s identity; or  
veterinarians, physical therapists, psychologists, and other similar  
healthcare professionals. However, it excludes services not directly  
related to a medical services field, such as the operation of health  
clubs or spas; payment processing; or the research, testing,  
manufacture, and sale of pharmaceuticals or medical devices;  
– Receiving fees, compensation, or other income for appearing  
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  
business are $25 million or less and less than 10% of the gross  
receipts are from the performance of services in a specified service  
field, then your trade or business isn’t considered an SSTB, and thus  
may generate income eligible for the QBI deduction for the tax year,  
regardless of your taxable income.  
and similar professionals. However, it excludes services that don’t  
require skills unique to the field of law such as services by printers,  
delivery services, or stenography services;  
Accounting, including accountants, enrolled agents, return  
preparers, financial auditors, and similar professionals;  
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Instructions for Form 8995-A (2023)  
 
De minimis rule 2. If your gross receipts from the trade or  
business are more than $25 million and less than 5% of the gross  
receipts are from the performance of services, then your trade or  
business isn’t considered an SSTB, and thus may generate income  
eligible for the QBI deduction for the tax year, regardless of your  
taxable income.  
De minimis rule 3. If your trade or business provides services or  
property to an SSTB and there is 50% or more common ownership  
of the trades or businesses, that portion of the business that  
provides services or property to the SSTB is treated as a separate  
SSTB concerning the common owners.  
Wage income (except “Statutory Employees” where Form W-2,  
box 13, is checked).  
Amounts received as reasonable compensation from an S  
corporation.  
Amounts received as guaranteed payments.  
Amounts received as payments by a partner for services other  
than in a capacity as a partner.  
Items treated as capital gains or losses under any provision of the  
Code.  
Dividends and dividend equivalents.  
Interest income not properly allocable to a trade or business.  
Commodities transactions or foreign currency gains or losses.  
Income, loss, or deductions from notional principal contracts.  
Annuities (unless received in connection with the trade or  
Aggregation. If you’re engaged in more than one trade or business,  
each trade or business is a separate trade or business for purposes  
of applying the W-2 wage limitation or UBIA of qualified property  
limitation, discussed later. However, you may choose to aggregate  
multiple trades or businesses into a single trade or business for  
purposes of applying the limitations if you meet the following  
requirements.  
business).  
Qualified REIT dividends.  
Qualified PTP income.  
See the QBI Flow Chart, later, to figure if an item of income, gain,  
deduction, or loss is included in QBI.  
1. You or a group of persons directly or indirectly own 50% or  
more of each trade or business for a majority of the tax year,  
including the last day of the tax year, and all trades or businesses  
use the same tax year end.  
Losses or deductions from a qualified trade or business that are  
suspended by other provisions of the Internal Revenue Code are not  
qualified losses or deductions and therefore, are not included in your  
QBI for the year. Such Code provisions include, but aren’t limited to,  
sections 163(j), 179, 461(l), 465, 469, 704(d), and 1366(d). Instead,  
qualified losses and deductions are taken into account in the tax  
year they’re included in calculating your taxable income.  
When losses or deductions are suspended, you must determine  
the qualified portion of the losses or deductions that must be  
included in QBI in subsequent years when allowed in calculating  
your taxable income. In general, losses and deductions incurred  
prior to 2018 are not qualified losses or deductions and are not  
included in QBI in the year they are included in calculating taxable  
income.  
If a loss or deduction is partially suspended, only the portion of  
the allowed loss or deduction attributable to QBI must be considered  
when determining QBI from the trade or business in the year the loss  
or deduction is incurred. The portion of the allowed loss or deduction  
attributable to QBI is determined by first calculating the percentage  
of the total loss attributable to QBI by dividing the portion of the total  
loss attributable to QBI by the overall total loss. The allowed loss or  
deduction is then multiplied by this percentage to determine the  
portion of the allowed loss or deduction attributable to QBI.  
2. None of the trades or businesses are an SSTB.  
3. The trades or businesses meet at least two of the following  
factors.  
a. They provide products, property, or services that are the  
same or that are customarily offered together.  
b. They share facilities or share significant centralized business  
elements such as personnel, accounting, legal, manufacturing,  
purchasing, human resources, or information technology resources.  
c. They are operated in coordination with, or reliance upon, one  
or more of the businesses in the aggregated group.  
If a relevant pass-through entity (RPE) aggregates multiple trades  
or businesses, you must attach the RPE’s aggregations to your  
Schedule B (Form 8995-A). You may not separate the trades or  
businesses aggregated by the RPE, but you may add additional  
trades or businesses to the aggregation, assuming the rules above  
are met. If you choose to aggregate multiple trades or businesses,  
complete Schedule B (Form 8995-A) before starting Part I of Form  
8995-A.  
If your trade or business is an SSTB, whether the trade or  
business is a qualified trade or business is determined based on  
your taxable income in the year the loss or deduction is incurred. If  
your taxable income is within the phase-in range in that year, you  
must determine and apply the applicable percentage in the year the  
loss or deduction was incurred to determine the qualified portion of  
the suspended loss or deduction.  
Losses and deductions retain their status as either qualified or  
non-qualified from year to year while suspended. Therefore, you  
must track each category of loss or deduction until the loss or  
deduction is no longer suspended. For an example of a reasonable  
method to track and compute the amount of previously disallowed  
losses or deductions to be included in your QBI deduction  
calculation in the year allowed, see Tracking Losses or Deductions  
When losses or deductions previously suspended by other Code  
provisions are allowed in calculating taxable income, the qualified  
portion of the loss or deduction allowed under each provision is  
treated as a qualified net loss carryforward from a separate trade or  
business when calculating the current year’s QBI deduction.  
Any qualified loss or deduction from an SSTB allowed in  
calculating taxable income isn’t included on the Schedule A (Form  
8995-A) as the applicable percentage was previously determined  
and applied in the year the loss or deduction was incurred and  
should not be redetermined in the year the loss or deduction is  
allowed.  
Your aggregations must be reported consistently for all  
subsequent years, unless there is a significant change in facts and  
circumstances that disqualify the aggregation. Schedule B (Form  
8995-A) must be completed each year to show your trade or  
business aggregation(s) and must include any aggregation of an  
RPE in which you hold a direct or indirect interest. Failure to disclose  
such aggregated trades or businesses may cause them to be  
disaggregated.  
Note. You must combine the QBI, W-2 wages, and UBIA of qualified  
property for all aggregated trades or businesses, for purposes of  
applying the W-2 wage and UBIA of qualified property limitations.  
Determining your QBI. Your QBI includes qualified items of  
income, gain, deduction, and loss from your trades or businesses  
that are effectively connected with the conduct of a trade or business  
in the United States. This includes qualified items from partnerships  
(other than PTPs), S corporations, sole proprietorships, and certain  
estates and trusts that are allowed in calculating your taxable  
income for the year.  
To figure the total amount of QBI, you must consider all items that  
are attributable to the trade or business. This includes, but isn’t  
limited to, unreimbursed partnership expenses, business interest  
expense, deductible part of self-employment tax, self-employment  
health insurance deduction, and contributions to qualified retirement  
plans. QBI doesn’t include any of the following.  
Items that aren’t properly includible in income.  
Income that isn’t effectively connected with the conduct of a trade  
Determining whether items included on Schedule K-1 are in-  
cludible in QBI. The amounts reported on your Schedule K-1 as  
“QBI/Qualified PTP Items Subject to Taxpayer-Specific  
or business within the United States (go to IRS.gov/ECI).  
3
Instructions for Form 8995-A (2023)  
 
Determinations” from a partnership, S corporation, estate, or trust  
aren’t automatically includible in your QBI. To determine if the item of  
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,  
ordinary business income or loss is generally included in QBI if it  
was used in computing your taxable income and not excluded,  
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  
gain or loss. See the QBI Flow Chart, later, to determine if an item of  
income, gain, deduction, or loss is includible in QBI.  
b. Sick pay or annuity payments.  
3. Subtract (2) from (1).  
4. Add together any amounts reported in box 12 of the relevant  
Forms W-2 that are properly coded D, E, F, G, or S.  
5. Add (3) and (4).  
Tracking wages method. Under the tracking wages method,  
W-2 wages are figured as follows.  
1. Add the amounts that are wages for federal income tax  
withholding purposes and that are also reported in box 1 of the  
relevant Forms W-2.  
Determining whether information reported on your Form  
1099-PATR is includible in QBI. The amounts reported to you as  
your share of patronage dividends and similar payments on Form  
1099-PATR aren’t automatically includible in your QBI. Payments  
may be included in QBI to the extent they are (1) related to your  
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  
payments reported as from an SSTB, unless your taxable income is  
below the threshold, in which case payments from SSTBs are  
includible in your QBI.  
If you received qualified payments reported to you on Form  
1099-PATR from a specified agricultural or horticultural cooperative,  
you’re required to reduce your QBI by the patron reduction. See  
2. Add together any amounts reported in box 12 of the relevant  
Forms W-2 that are properly coded D, E, F, G, or S.  
3. Add (1) and (2).  
To figure your W-2 wages using one of the three methods above,  
generally use the sum of the amounts you properly report for each  
employee on Form W-2, Wage and Tax Statement, for the calendar  
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  
Administration more than 60 days after its due date (including  
extensions).  
Note. For purposes of determining W-2 wages for limitation  
purposes, fiscal year end trades or businesses include qualified  
amounts paid to employees for the calendar year ended with or  
within the business’s tax year.  
Determining whether items included on Schedule C (Form  
1040) are includible in QBI. The net gain or loss as reported on  
your Schedule C (Form 1040) isn’t automatically includible in your  
QBI. See the QBI Flow Chart, later, to determine if an item of  
income, gain, deduction, or loss is includible in QBI.  
Short tax year. If you have a short tax year, you must use the  
tracking wages method and do the following.  
Add the amounts that are wages for federal income tax  
withholding purposes, that are also reported on Form W-2, box 1, for  
any calendar year(s) containing any day within that short tax year,  
and that are actually paid during the short tax year; plus  
QBI Flow Chart. Use the flow chart to determine if an item of  
income, gain, deduction, or loss is includible in QBI. See the QBI  
Flow Chart, later.  
Any amounts reported in box 12 of the relevant Forms W-2 that  
Determining your W-2 wages for limitation purposes. W-2  
wages generally include amounts paid to employees for the  
performance of services, plus elective deferrals (for example,  
contributions to 401(k) plans, deferred compensation, and Roth IRA  
contributions). Amounts paid to statutory employees aren’t W-2  
wages when the “Statutory Employee” box on Form W-2, box 13, is  
checked.  
If you conduct more than one trade or business, the W-2 wages  
must be allocated among the various trades or businesses (or  
aggregated trades or businesses) to the trade or business that  
generated the wage expense. Also, only the W-2 wages properly  
allocable to QBI are includible. W-2 wages are properly allocable to  
QBI if the associated wage expense is taken into account in  
computing QBI.  
are properly coded D, E, F, G, or S for any calendar year(s)  
containing any day within that short tax year that are actually  
deferred or contributed during the short tax year.  
However, if you have a short tax year that doesn't include a  
calendar year ending within that short tax year, the following wages  
are treated as W-2 wages for a short year.  
Wages you properly report on Form W-2 that you actually paid  
during the tax year.  
Amounts reported on Forms W-2, box 12, that are properly coded  
D, E, F, G, or S that are actually deferred or contributed during the  
short tax year.  
Acquisition or disposition of a trade or business. If you  
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  
disposed of trade or business during the calendar year, then the W-2  
wages for the calendar year of the acquisition or disposition are  
allocated between each employer based on the period that the  
employees of the acquired or disposed of trade or business were  
employed by each employer. If you have a short tax year that doesn’t  
include a calendar year ending within your short tax year, see Short  
tax year, earlier.  
Before allocating W-2 wages among various trades or  
businesses (or aggregated trades or businesses) and/or allocating  
W-2 wages to QBI, first determine the total amount of W-2 wages.  
There are three methods to figure your W-2 wages.  
Unmodified box method.  
Modified box 1 method.  
Tracking wages method.  
Unmodified box method. Under the unmodified box method,  
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  
other tax year. Also, an amount can't be treated as W-2 wages by  
more than one taxpayer.  
W-2 wages are the smaller of:  
1. The sum of the amounts reported in box 1 of the relevant  
Forms W-2, or  
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  
immediately after acquisition means the basis on the  
Modified box 1 method. Under the modified box 1 method, W-2  
wages are figured as follows.  
placed-in-service date. Qualified property includes tangible property  
subject to depreciation under section 167 held, and used in the  
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  
depreciable period hasn’t ended before the close of the tax year.  
The depreciable period ends on the later of 10 years after the  
property is first placed in service by you or the last day of the last full  
year in the applicable recovery period under section 168(c).  
1. Add the amounts reported in box 1 of the relevant Forms  
W-2.  
2. Add all amounts not considered wages, for federal income  
tax withholding purposes including, but not limited to:  
a. Supplemental unemployment compensation benefits within  
the meaning of Rev. Rul. 90-72, and  
4
Instructions for Form 8995-A (2023)  
 
Additional first-year depreciation under section 168 doesn’t affect  
the applicable recovery period.  
Alternative minimum tax. The QBI deduction used to determine  
regular tax is also used to determine alternative minimum taxable  
income.  
Improvements to property that has already been placed in  
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  
exchange that’s of a like-kind to the qualified relinquished property,  
or for qualified replacement property acquired in a section 1033  
involuntary conversion that’s similar or related in service or use to  
the qualified converted property, the UBIA of the qualified  
replacement property is the same as the UBIA of the qualified  
property exchanged, converted, decreased by excess boot, or  
increased by the amount of money paid or the fair market value of  
property transferred by the taxpayer that isn’t of a like-kind or similar  
or related in service or use.  
deduction when computing self-employment tax.  
Net investment income isn’t reduced by the QBI deduction when  
computing net investment income tax.  
Puerto Rico. For purposes of determining QBI, the United States  
includes Puerto Rico for taxpayers who have taxable income from  
sources within Puerto Rico that are subject to tax under section 1.  
Further, W-2 wages are figured by including W-2 wages paid for  
services performed in Puerto Rico without regard to section 3401(a)  
(8).  
Generally, replacement property retains the same  
Specific Instructions  
placed-in-service date as that of the relinquished property. However,  
for the portion of the replacement property’s UBIA that exceeds the  
relinquished property’s UBIA, that portion is treated as separate  
qualified property placed in service on the date on which the  
replacement property is first placed in service.  
You may need to complete Schedule A, B, C, and/or D, as  
applicable, prior to starting Part I of the form.  
Taxable income before qualified business income deduction.  
Form 8995-A, Part III, Part IV, and Schedule A (Form 8995-A) each  
ask for your taxable income figured without regard to the QBI  
deduction. Enter your taxable income figured before any QBI  
deduction, computed as follows.  
Generally, property received in a nonrecognition transaction  
(section 332, 351, 361, 721, or 731) retains the same UBIA and  
placed-in-service date as that of the transferor. However, for the  
portion of the transferee’s UBIA that exceeds the transferor’s UBIA,  
that portion is treated as separate qualified property placed in  
service on the date of the transfer.  
Property acquired within 60 days of the year end that’s disposed  
of within 120 days without being used by the trade or business for at  
least 45 days is generally not qualified property.  
Form 1040, 1040-SR, or 1040-NR filers: Form 1040, 1040-SR, or  
1040-NR, line 11, minus Form 1040, 1040-SR, or 1040-NR, line 12.  
Form 1041 filers: Form 1041, line 23, plus Form 1041, line 20.  
Form 1041-N filers: Form 1041-N, line 13, plus qualified income  
deduction reported on Form 1041-N, line 9.  
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  
Component  
S-corporation portion of an ESBT filer: ESBT Tax Worksheet,  
line 13, plus ESBT Tax Worksheet, line 11.  
Your qualified REIT/PTP component equals 20% of your qualified  
REIT dividends and qualified PTP income or loss (including your  
share of qualified REIT dividends and qualified PTP income or loss  
from RPEs).  
Schedule A (Form 8995-A)—Specified Service  
Trades or Businesses  
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  
($364,200 and $464,200 if married filing jointly).  
Qualified REIT dividends include any dividend you received from  
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  
under section 857(b)(3) and isn’t a qualified dividend under section  
1(h)(11). Plus, your qualified REIT dividends include those received  
from a regulated investment company (RIC).  
If your taxable income isn't more than $182,100 ($364,200 if  
married filing jointly) and you're not a patron of an agricultural or  
horticultural cooperative, don't file Form 8995-A; instead, file Form  
8995, Qualified Business Income Deduction Simplified  
Computation. Otherwise, complete Schedule D (Form 8995-A)  
before beginning Schedule A.  
Qualified PTP income/(loss) includes your share of qualified  
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  
include gain or loss recognized on the disposition of your PTP  
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  
for the year. Qualified REIT dividends are reported to you on Form  
1099-DIV, Dividends and Distributions, box 5, Section 199A  
dividends.  
If your taxable income is more than $232,100 ($464,200 if  
married filing jointly), your SSTB doesn't qualify for the deduction.  
Schedule A (Form 8995-A), Part II, should be used for SSTBs  
that are PTPs, and Part I should be used for all other SSTBs.  
earlier.  
Note. PTP income generated by an SSTB may be limited to the  
applicable percentage if your taxable income is within the phase-in  
range or completely excluded from qualified PTP income if your  
taxable income is above the phase-in range. See Schedule A (Form  
Lines 2 and 16. Enter your QBI or Qualified PTP income for each  
SSTB, as applicable.  
income deduction, earlier.  
Coordination With Other Code  
Sections  
Schedule B (Form 8995-A)—Aggregation of  
Business Operations  
If you qualify and choose to aggregate multiple trades or businesses  
into a single trade or business, you must complete Schedule B  
before starting Part I.  
A net operating loss under section 172 is generally figured without  
the QBI deduction, meaning the QBI deduction can’t create or  
increase the net operating loss. However, an excess business loss  
under section 461(l) is treated as a net operating loss carryforward  
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 3(c). Enter your QBI for each separate trade or business.  
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.  
5
Instructions for Form 8995-A (2023)  
   
If none of your aggregations have a qualified business loss in the  
current year and you don’t have a qualified business loss  
carryforward from prior years, enter the total amounts on the  
appropriate lines of Form 8995-A, Part II.  
production, growth, or extraction of any agricultural or horticultural  
products to which Part I of subchapter T applies. See section  
199A(g)(3). Also see TD 9947.  
Line 2. Input the QBI for the trade or business as properly allocable  
to qualified payments received from the cooperative. Qualified  
payments include patronage dividends and per-unit retains  
allocations.  
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 Form 8995-A, 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.  
Line 4. Enter the portion of W-2 wages from Form 8995-A, line 4,  
that are allocable to the qualified payments.  
Part I—Trade, Business, and Aggregation  
Information  
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,  
PTP, skip Parts I through III and complete Part IV. Before you begin  
completing Part I, determine if you need to complete Schedule A, B,  
or C by answering the following questions.  
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.  
1. Do you have an SSTB? If yes, see Schedule A (Form  
Note. The line items for this schedule are computed out of order:  
first figure line 1, column (a); then skip to lines 2 through 5; and  
come back to line 1, columns (b) and (c).  
2. Are you choosing to aggregate multiple trades or businesses  
into a single trade or business? If yes, complete Schedule B (Form  
8995-A) before starting Part I.  
3. Did any of your trades, businesses, or aggregations have QBI  
for the year or do you have a qualified business loss carryforward  
from prior years? If yes, complete Schedule C (Form 8995-A) before  
starting Part I.  
Line 1, column (a). If you aggregated multiple trades or  
businesses into a single business on Schedule B (Form 8995-A),  
enter the aggregation group name, Aggregation 1, 2, 3, etc., instead  
of entering the business name along with the aggregated trade’s or  
business’s QBI.  
Line 1. If you aggregated multiple trades or businesses into a single  
business on Schedule B (Form 8995-A), enter the aggregation group  
name, for example, Aggregation 1, 2, 3, etc., instead of entering the  
business name, check the box under 1(c), and leave line 1(d) blank.  
Enter on line 1(d) the employer identification number (EIN). If you  
don’t have an EIN, enter your social security number (SSN) or  
individual taxpayer identification 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 the owner's name,  
and tax identification number.  
Line 2. This includes the amount reported in the prior year on  
Schedule C (Form 8995-A), line 6, or if the simplified worksheet was  
previously used, Form 8995, line 16, including prior year loss  
carryforwards even if the loss was unreported or the trade or  
business that generated the loss is no longer in existence. This also  
includes the QBI portion of losses or deductions suspended from  
use in calculating taxable income in the year generated that are  
included in taxable income in the current year. See Determining your  
QBI, earlier, and QBI Loss Tracking Worksheet, later.  
Line 1, column (b). Apportion the amount from line 5 among all  
your trades or businesses with QBI, but not loss, in proportion to  
their QBI.  
Part II—Determine Your Adjusted Qualified  
Business Income  
Line 1, column (c). Enter this amount on the corresponding line on  
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  
wages and UBIA of qualified property must be zero for that trade or  
business, as the W-2 wages and UBIA of qualified property from that  
trade or business aren’t allowed in computing your QBI limitations.  
Line 2. If you have four or more trades or businesses, attach a  
statement with the information for Parts I, II, and III, as applicable.  
earlier.  
Line 4. Enter your W-2 wages from the trade, business, or  
Line 6. The amount reported on this line must be reported in the  
next tax year on Schedule C (Form 8995-A), line 2, or Form 8995,  
line 3, Qualified business net (loss) carryforward from prior years, as  
applicable. This amount will offset QBI in subsequent tax years  
regardless of whether it is reported and whether the trade or  
business that generated the loss is still in existence. This  
carryforward doesn’t affect the deductibility of the loss for purposes  
of any other provisions of the Code.  
aggregation.  
Note. If the QBI on line 2, for the trade, business, or aggregation, is  
zero, then the amount reported on line 4, for that trade or business,  
must also be zero.  
Line 7. Enter your share of the UBIA for all qualified property for the  
trade or business.  
Note. If you have an overall qualified business net loss carryforward  
for the year, you don’t qualify for a QBI deduction in the current year  
unless you have qualified REIT dividends or qualified PTP income.  
Note. If the QBI on line 2, for the trade, business, or aggregation, is  
zero, then the amount reported on line 7, for that trade or business,  
must also be zero.  
Line 14. Report the amount from Schedule D (Form 8995-A), line 6,  
if any. Patrons of agricultural or horticultural cooperatives are  
required to reduce their QBI component by the lesser of:  
Schedule D (Form 8995-A)—Special Rules for  
Patrons of Agricultural or Horticultural  
Cooperatives  
9% of QBI allocable to qualified payments from a specified  
cooperative, or  
You must complete Schedule D (Form 8995-A) if you’re a patron in a  
specified agricultural or horticultural cooperative and are claiming a  
QBI deduction in relation to your trade or business conducted with  
the cooperative. A specified agricultural or horticultural cooperative  
is a cooperative that markets or is engaged in the manufacturing,  
50% of W-2 wages allocable to qualified payments.  
If you’re a patron of an agricultural or horticultural cooperative,  
complete Schedule D (Form 8995-A). See Schedule D (Form  
6
Instructions for Form 8995-A (2023)  
   
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  
reported on Form 1040, 1040-SR, or 1040-NR, line 7. If you file  
Schedule D (Form 1040), your net capital gain is the smaller of  
Schedule D (Form 1040), line 15 or 16, unless line 15 or 16 is zero or  
less, in which case nothing is added to your qualified dividends.  
Line 15. Subtract the patron reduction on line 14 from the amount  
on line 13. If zero or less, enter zero.  
Line 16. Add all amounts reported on line 15. If there are four or  
more trades or businesses, include line 15 amounts from all trades  
or businesses and complete line 16 only on the first page. Leave  
line 16 blank on the attached statements described in the line 2  
instructions.  
Form 1041 filers, your qualified dividends allocable to estates and  
trusts on line 2b(2). For estates or trusts required to file Schedule D  
(Form 1041), add the qualified dividends to the smaller of  
Schedule D (Form 1041), line 18a(2), or line 19(2), unless either  
line 18a(2) or 19(2) is zero or less, in which case nothing is added to  
your qualified dividends.  
Part III—Phased-in Reduction  
Complete Part III only if your taxable income is more than $182,100  
but not $232,100 ($364,200 and $464,200 if married filing jointly)  
and line 10 is less than line 3. Otherwise, skip Part III.  
Form 1041-N filers, your qualified dividends line 2b, plus the  
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  
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  
zero or less, in which case the net capital gain for purposes of  
section 199A is zero.  
Part IV—Determine Your Qualified Business  
Income Deduction  
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 18(a)(2), or line 19(2), is zero or less, in which case nothing is  
added to your qualified dividends.  
Line 28. If the net amount is a loss, enter as a negative number.  
Any negative amount will be carried forward to the next year. This  
carryforward doesn’t affect the deductibility of the loss for purposes  
of any other provisions of the Code.  
Line 39. Enter the amount from line 39 on Form 1040 or 1040-SR,  
line 13; Form 1040-NR, line 13a; Form 1041, line 20; Form 1041-N,  
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  
number), the loss must be carried forward to next year.  
Line 34. Enter the amount from your tax return as follows.  
7
Instructions for Form 8995-A (2023)  
QBI Flow Chart  
Figure 1. Use this chart to determine if an item of income, gain, deduction, or loss is included in QBI.  
No  
1. Is the item effectively connected with the conduct of a trade or  
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,  
contributions to qualiꢀed retirement plans, unreimbursed  
partnership expenses, and interest expenses for the purchase of the  
partnership/S corporation interest/stock)?  
No  
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  
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.  
No  
No  
Yes  
4. Is the item included in ꢀguring your taxable income? Items  
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  
Yes  
Yes  
5. Is the item treated as a capital gain (loss) or dividend/dividend  
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  
working capital, reserves, or similar accounts isn’t allocable to a  
trade or business.  
No  
Yes  
Yes  
7. Is the item an annuity, other than an annuity received in  
connection with the trade or business?  
No  
8. Is the item a commodities transaction, foreign currency gain (loss)  
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 qualiꢀed PTP income (loss)? If “Yes,” it’s not QBI, but  
it’s included in the REIT/PTP component of the QBI computation.  
Include this item as a qualiꢀed item of income, gain, deduction, or  
loss from a PTP.  
Yes  
Yes  
No  
10. Is the item W-2 wage income (except where “Statutory  
employee” is checked in box 13 of Form W-2)?  
This item isn’t QBI.  
No  
See Figure 2, QBI Flow  
Chart (continued).  
8
Instructions for Form 8995-A (2023)  
 
QBI Flow Chart (continued)  
Figure 2. Use this chart to determine if an item of income, gain, deduction, or loss is included in QBI.  
Yes  
11. Is the item an amount received for reasonable compensation  
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  
phase-in range? If “Yes,” this item is partially includible in QBI.  
Complete Schedule A (Form 8995-A).  
Yes  
This item is QBI.  
This item isn’t QBI.  
No  
prior year suspended losses allowed must first be allocated to any  
losses suspended from 2017 and earlier, until the pre-2018 losses  
(row 1) are exhausted. All prior year suspended losses allowed  
allocated to pre-2018 years are Non-QBI. Once all pre-2018 losses  
have been used, losses will be allocated based on the QBI Fixed  
Percentage in column B for each subsequent year in which losses  
were suspended.  
Tracking Losses or Deductions  
Suspended by Other Provisions  
A worksheet, QBI Loss Tracking Worksheet (below), is  
provided that can help you track your suspended losses.  
!
CAUTION  
Losses and deductions that would be properly includible in  
QBI, if such loss or deduction wasn't suspended (excluded from  
taxable income) by other provisions, must be tracked separately for  
purposes of determining the future amount includible as negative  
QBI. Use as many copies of the worksheet as necessary to  
separately track your suspended loss(es) under each suspending  
provision.  
Prior Year Suspended Losses Allowed in 2018  
Note. If column C, row 2, is zero, skip Step 1 through Step 3.  
Step 1. Allocate prior year suspended losses allowed from column  
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  
prior year suspended losses allowed between QBI and Non-QBI.  
1. For the allocation to QBI, multiply the remaining losses (after  
Step 1), up to the total suspended losses reported in column A, row  
2, by column B, row 2, and enter this amount in column J, row 2.  
2. For the allocation to Non-QBI, multiply the remaining losses  
(after Step 1), up to the total suspended losses reported in column  
A, row 2, by 100% less the amount in column B, row 2, and add it to  
any amount already included in column F, row 2.  
Note. All losses should be entered as a negative number on the  
worksheet.  
Column A. Total suspended losses in year of disallowance.  
For rows 1 through 7, enter your suspended losses by year starting  
with any pre-2018 losses. Additional rows can be added as needed  
in future years. Allocate these losses between Non-QBI and QBI in  
columns E and I. See below.  
Note. All pre-2018 losses are allocable to Non-QBI.  
Step 3. See the instructions for columns G, K, H, and L for rows 1  
Column E. Non-QBI suspended losses. For rows 1 through 7,  
enter suspended losses allocable to Non-QBI into the appropriate  
year row (row 1, pre-2018; row 2, 2018; row 3, 2019, etc.).  
and 2.  
Prior Year Suspended Losses Allowed in 2019  
Column I. QBI suspended losses. For rows 2 through 7, enter  
suspended losses allocable to QBI into the appropriate year row  
(row 2, 2018; row 3, 2019, etc.).  
Note. If column C, row 3, is zero, skip Step 4 through Step 6.  
Step 4. Allocate prior year suspended losses allowed from column  
C, row 3, up to the remaining suspended losses reported in column  
H, row 1, to column F, row 3.  
Column B. QBI fixed percentage. Divide column I by column A for  
each year and enter the percentage in the corresponding year row.  
Column C. Prior year suspended losses allowed. For rows 2  
through 7, enter any prior year suspended losses allowed in the  
corresponding row for the year allowed.  
Step 5. If there are any prior year suspended losses allowed  
remaining from column C, row 3, after Step 4, allocate the remaining  
prior year suspended losses allowed between QBI and Non-QBI  
using the FIFO method until each year's loss has been reduced to  
zero.  
1. For the allocation to QBI, multiply the remaining losses (after  
Step 4), up to the sum of the remaining suspended losses reported  
in column H, row 2, and column L, row 2, by column B, row 2, and  
enter this amount in column J, row 3.  
Note. The total prior year suspended losses allowed entered in  
column C, row 8, can't exceed the total amount entered in column A,  
row 8.  
Column F. Non-QBI allocated prior year suspended losses al-  
lowed; and column J, QBI allocated prior year suspended los-  
ses allowed. When allocating prior year suspended losses allowed  
(column C) between Non-QBI (column F) and QBI (column J), the  
First-In-First-Out (FIFO) method must be used. To apply this rule,  
2. For the allocation to Non-QBI, multiply the remaining losses  
(after Step 4), up to the sum of the remaining suspended losses  
9
Instructions for Form 8995-A (2023)  
 
reported in column H, row 2, and column L, row 2, by 100% less the  
amount in column B, row 2, and add it to any amount already  
included in column F, row 3.  
3. If any prior year suspended losses allowed remain from  
column C, row 3, after Steps 5(a) and (b), multiply the remaining  
losses (after Steps 5(a) and (b)), up to the sum of the remaining  
suspended losses reported in column H, row 3, and column L, row 3,  
by column B, row 3, and add it to any amount already included in  
column J, row 3.  
4. Then, multiply the remaining losses (after Steps 5(a) and  
(b)), up to the sum of the remaining suspended losses reported in  
column H, row 3, and column L, row 3, by 100% less the amount in  
column B, row 3, and add it to any amount already included in  
column F, row 3.  
Column D. Allowed losses limited by other Code sections.  
When a prior year suspended loss allowed under one Code section  
is subsequently limited by another Code section, this loss shouldn't  
be included in the QBI calculation until the loss is allowed in the  
computation of taxable income. Instead, that loss is added to the  
total suspended losses in the year of disallowance under the new  
limiting Code section for continuation of its suspension. This column  
along with row 9, addresses how to account for such losses.  
In column D, enter the amount of any prior year suspended  
losses allowed under this Code section, but subsequently  
disallowed under another Code section on the row for the year the  
loss was allowed under this Code section. These amounts will be  
allocated between Non-QBI and QBI in columns G and K for the  
corresponding year. See Row 9 below.  
Row 9. Allocation of allowed losses limited by other Code sec-  
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  
G(i), row 8, multiplied by column D, row 2, and enter this amount in  
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),  
row 8)).  
Next, compute the amount for Non-QBI for the 2018 row. Divide  
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  
column G(i), row 9. Written as a formula: column K(i), row 9 =  
column D, row 2 x (column G(i), row 8 ÷ (column G(i), row 8 +  
column K(i), row 8)).  
Step 6. See the instructions for columns G, K, H, and L for rows 1  
through 3.  
Prior Year Suspended Losses Allowed in 2020 and  
Beyond  
Repeat Step 4 through Step 6 and adjust as necessary for any prior  
year suspended losses allowed in column C, row 4, and each row  
thereafter, as applicable.  
Additional year rows and columns may be added as needed in  
future years.  
Columns G and K. Utilized “20XX. Use these columns to show  
how the allocated prior year suspended losses allowed in columns F  
and J are utilized each year. For example, the loss reported in  
column F, row 2, must tie to the amount reported in column G(i), row  
8; and the loss reported in column F, row 3, must tie to the amount  
reported in column G(ii), row 8, etc.  
Continue the computation for columns K(ii) and G(ii) through  
K(vi) and G(vi), multiply the percentage times the amount in column  
D, row 5, for 2021, column D, row 6, for 2022, and column D, row 7,  
for 2023, respectively.  
Row 10. Total prior year suspended losses allowed that must  
be included in QBI. The amounts reported in columns K(i) through  
K(vi) for row 10, equal the loss amount that must be included in your  
current year QBI, respectively, for each year, as a loss from a  
separate trade or business.  
Column H. Remaining suspended losses. For each row, take the  
amount in column E less the amounts utilized in all columns G(i)  
through G(vi). This amount can't be more than zero.  
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.  
10  
Instructions for Form 8995-A (2023)  
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  
losses in year  
of disallowance  
B. QBI fixed percentage  
C. Prior year  
suspended  
losses allowed  
D. Allowed losses  
limited by other  
Code sections  
0.00  
%
%
%
%
%
%
%
1. Pre-2018  
2.  
3.  
4.  
5.  
6.  
7.  
2018  
2019  
2020  
2021  
2022  
2023  
Total  
8.  
Part II  
Non-QBI Suspended and Allowed Losses  
Allocable to Non-QBI  
E. Suspended  
F. Allocated  
prior year  
suspended  
G(i).  
Utilized  
2018  
G(ii).  
Utilized  
2019  
G(iii).  
Utilized  
2020  
G(iv).  
Utilized  
2021  
G(v).  
Utilized  
2022  
G(vi).  
Utilized  
2023  
H. Remaining  
suspended  
losses  
losses  
losses allowed  
1. Pre-2018  
2.  
3.  
4.  
5.  
6.  
7.  
8.  
2018  
2019  
2020  
2021  
2022  
2023  
Total  
9. Allocation of allowed losses limited by other  
Code sections  
.
.
.
.
.
.
.
.
.
Part III  
Allocable to QBI  
I. Suspended  
losses  
QBI Suspended and Allowed Losses  
J. Allocated  
prior year  
K(i).  
Utilized  
2018  
K(ii).  
Utilized  
2019  
K(iii).  
Utilized  
2020  
K(iv).  
Utilized  
2021  
K(v).  
Utilized  
2022  
K(vi).  
Utilized  
2023  
L. Remaining  
suspended  
losses  
suspended  
losses allowed  
1. Pre-2018  
2.  
3.  
4.  
5.  
6.  
7.  
8.  
2018  
2019  
2020  
2021  
2022  
2023  
Total  
9. Allocation of allowed losses limited by other  
Code sections  
.
.
.
.
.
.
.
.
.
10. Total prior year suspended losses allowed  
that must be included in QBI  
.
.
.
.
.
11  
Instructions for Form 8995-A (2023)  
 
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  
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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  
8995-A  
Schedule A (8895-A)  
Schedule B (8895-A)  
Schedule C (8895-A)  
Schedule D (8895-A)  
4 hr., 43 min.  
7 hr., 52 min.  
3 hr., 16 min.  
1 hr., 34 min.  
1 hr., 19 min.  
1 hr., 5 min.  
51 min.  
1 hr., 53 min.  
7 min.  
7 min.  
2 hr., 6min.  
6 hr., 6 min.  
1 hr., 15 min.  
20 min.  
50 min.  
47 min.  
16 min.  
12  
Instructions for Form 8995-A (2023)