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