2020 – 08/24 – CARES Act made changes to excess business losses
Wolff and Taylor September 14, 2020 No Comments Share
CARES Act14 Sep
The CARES Act made changes to excess business losses that affect those who hold an interest in a business (or may do so in the future). This includes changes that are retroactive and there may be opportunities to file amended tax returns. The CARES Act made several retroactive corrections to the excess business loss rules as they were originally stated in the 2017 Tax Cuts and Jobs Act. Most importantly, the law clarified that deductions, gross income or gain attributable to employment aren’t taken into account in calculating an excess business loss. This means that excess business losses can’t shelter either net taxable investment income or net taxable employment income.
Previous Article
2023 – 02/07 – Answers to your questions about 2023 limits on individual taxes