Net Operating Loss or Suspended Passive Loss?
Last year I had rental losses totaling -$15,727 and unemployment income of $4,500. TurboTax combined the two which resulted in an AGI of $-11,227. It indicated I took the standard deduction and put the full -$15,727 loss on "QBI loss carryover from Form 8895 line 16".
1. Why did the full amount end up on line 16 and not the AGI of -$11,227?
-I suspect my standard deduction reduced the $4,500 and left the -$15,727 remaining. Am I correct?
2. Does this mean this loss will be treated as passive and therefore only reduce passive income in future years? OR does the "Rental Real Estate Loss Allowance" apply to my situation and now I have a Net Operating Loss that can be applied to any income in future years (passive or non-passive)?
3. Is there a distinction between QBI Passive Losses and non-QBI Passive Losses? If I do not elect the safe harbor to qualify these properties as qualified businesses in future years, will I end up carrying these losses and generating suspended losses on non-QBI properties?