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Section 199A
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Loss Carryfoward Overview

There are several types of loss carryforwards that apply to Section 199A. Due to the late release of instructions for many tax law changes related to the Tax Cuts and Jobs Act for the 2018 tax year, many of these carryforward amounts were not retained by ONESOURCE Trust Tax from the 2018 tax return compute. As a result, carryforwards needed for the 2019 tax return must be determined and entered in ONESOURCE Trust Tax prior to return processing.
This guide explains which carryforward amounts were retained and which ones were not, and provides details on how to determine and enter amounts that require input for 2019 processing.

Account Level Carryforwards

Qualified business loss carryforward
-This represents the trust or estate’s share of qualified business loss carryforward, which was reported on either the Qualified Business Income Deduction-Simplified Worksheet, line 16 or Worksheet 12-A, Schedule C, line 6.
Qualified REIT dividends and PTP loss carryforward
-This represents the trust or estate’s share of qualified REIT dividends and PTP loss carryforward, which was reported on either the Qualified Business Income Deduction-Simplified Worksheet, line 17 or Worksheet 12-A, Part IV, line 38.
For non-ESBT accounts (as well as non-S portion of ESBT accounts), these account level carryforward amounts were retained.
For ESBT accounts, the S-portion of these carryforward amounts was not saved and will need to be entered using information derived from the 2018 print file.
The following examples provide further explanation of determining these carryforward amounts. The first example is for returns that produced a Simplified Worksheet and the second example is for returns that produced a Worksheet 12-A.
Example 1: Simplified Worksheet Account Level Carryforwards
For ESBT accounts, either
** NON-S PORTION OF ESBT **
 or
** S PORTION OF ESBT **
 shows at the top of the 2018 Simplified Worksheet.
Example 2: Worksheet 12-A Account Level Carryforwards
For ESBT accounts, either
** NON-S PORTION OF ESBT **
 or
** S PORTION OF ESBT **
 shows at the top of the 2018 Worksheet 12-A, page 1.
As shown in the graphics below, the Non-S portion of the carryforwards were retained and are visible in ONESOURCE Trust Tax in tax year 2019.