IR-2018-254: IRS issues guidance on changes to excess business and net operating losses
Internal Revenue Service (IRS) sent this bulletin at 12/19/2018 10:05 AM EST
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Issue Number: IR-2018-254Inside This IssueIRS issues guidance on changes to excess business and net operating losses WASHINGTON — The Internal Revenue Service issued guidance on excess business loss limitations and net operating losses following law changes in the Tax Cuts and Jobs Act (TCJA). Excess business losses An excess business loss is the amount by which the total deductions from all trades or businesses exceed a taxpayer’s total gross income and gains from those trades or businesses, plus $250,000, or $500,000 for a joint return. Excess business losses that are disallowed are treated as a net operating loss carryover to the following taxable year. See Form 461 and instructions, available soon, for details. Net Operating Losses For losses arising in taxable years beginning after Dec. 31, 2017, the new law limits the NOL deduction to 80% of taxable income. Additional updates can be found on the Tax Reform Provisions that Affect Businesses page of IRS.gov. Thank you for subscribing to the IRS Newswire, an IRS e-mail service. If you know someone who might want to subscribe to this mailing list, please forward this message to them so they can subscribe. This message was distributed automatically from the mailing list IRS Newswire. Please Do Not Reply To This Message. |