KPMG report: Understanding the excess business loss limitation

The excess business loss regime takes effect again for tax years beginning in 2021.

The excess business loss regime takes effect again for tax years beginning in 2021.

The excess business loss regime—which takes effect again for tax years beginning in 2021—may disallow losses for individuals, trusts, and estates.

New tax rules often create uncertainty, especially if there is a lack of guidance.

A March 2022 report [PDF 266 KB] prepared by KPMG LLP considers how section 461(l) applies, explores ambiguous areas, and contemplates possible solutions.

 

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