How to file Form 8995 without Schedule-C

Question

My LLC is currently inactive with both $0 income and expenses. So, as far as I know, Schedule-C does not need to be prepared. but I still need to file 8995 to report loss carryforward.

However, FreeTaxUSA requires me to add a Schedule-C to file 8995.

Problem is that if I set the income and expenses on Schedule C to $0, I get error and it won't let me proceed.

If I delete my LLC, 'Business Income Deduction Carryforward' menu will disappear, making it not possible to file 8995.

Does anyone know a solution?

MatthewD · Answer

Hello ss23,

Form 8995 is used to calculate your Qualified Business Income for the deduction.  If you have no business income or loss in the current year, you generally do not need to file Form 8995 to report a prior-year loss carryforward. The loss carryforward remains available in your records, but you only file Form 8995 when you have Qualified Business Income (QBI), qualified REIT dividends, or PTP income/loss to claim a deduction.

Keep a record of your Form 8995 with the loss. If you have business income in the future, you may enter the QBI loss carryforward then. Otherwise, don't enter it.

ss23 · Answer

It won't let me proceed at the Final Steps and prompted to modify my income/expenses or delete the business.

If I delete it, "Business Income Deduction Carryforward" menu in "Income" section will disappear, and Form-8995 will also excluded from my final tax return.

toyotadriver · Answer

Is it stopping you from filing if you leave it $0? Or just warning you but you can click past it?