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When an S-Corp shareholder deducts losses, those losses reduce subsequent years' QBI Deduction (Form 8995, line 3 Qualified business net (loss) carryforward from the prior year). But what happens if a shareholder amends taxes from several years ago in a way which reduces the QBI loss? Does that shareholder then amend all the following years?

An example:

An S-Corp shareholder had a loss of $30K in 2020. They deducted this from their taxes, and the loss carried forward into 2021 and 2022 (reducing / eliminating their QBI Deduction).

Later, the S-Corp gets an ERTC, and the shareholder's 2020 $30K loss is reduced to $25K. I know they must amend their 2020 returns and pay the extra tax. What I am wondering is if they would then amend their 2021 and 2022 returns to get a larger QBI Deduction, and lower their tax burden for those years. (Is it allowable? beneficial? required?)

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What I am wondering is if they would then amend their 2021 and 2022 returns to get a larger QBI Deduction, and lower their tax burden for those years.

(Is it allowable?

Yes

beneficial?

Do the math.

required?)

No.

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