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KPMG report: Excess business loss limitation under section 461(I)

Excess business loss limitation under section 461(I)

The 2017 tax law reshaped the track for taxpayers racing toward the loss deduction finish line.


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The 2017 U.S. tax law (often referred to as the “Tax Cuts and Jobs Act”) replaced a somewhat obscure and limited provision that disallowed “excess farm losses” with a much broader (but similarly worded) provision that disallows “excess business losses” for tax years beginning after December 31, 2017, and before January 1, 2026. Non-corporate taxpayers—such as individuals, trusts, and estates—may be significantly (and adversely) affected by the loss limitation contained in new section 461(l).

Read a June 2019 report [PDF 313 KB] prepared by KPMG LLP: What’s News in Tax: Excess Business Losses—One More Hurdle to Clear

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