EXCESS BUSINESS LOSS LIMITATION
01.Core Concepts
• General Rule: For tax years 2018-2026, excess business losses are not permitted to be deducted by a non-corporate taxpayer. • Excess business losses are carried forward and add to a taxpayers NOL. • The “excess” loss is the amount over $256,000 ($512,000 for joint return) in 2026. OBBBA makes permanent the limitation on excess business losses of non-corporate taxpayers for tax years beginning after December 31, 2026.