Tax Warrior Chronicles

Writing Off Business Losses from 2020 – How It’s Different Than Prior Years

Posted on Thu, Feb 11, 2021

By: Jenny Zhang, CPA, MT

 

Undoubtedly, 2020 was a difficult year for businesses due to the pandemic. Many sustained significant losses because of temporary closings or reduced sales. Today, we will focus on 2020 tax law changes related to business losses and how to best utilize those losses in your tax filings.

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CARES Act Offers Relief for TCJA Interest Expense Limitations

Posted on Thu, Apr 09, 2020

As part of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), Congress provided temporary relief for individuals and businesses by adjusting interest expense limitations under Internal Revenue Code 163(j).  Today, we summarize those changes.

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Disallowance of Excess Business Losses

Posted on Thu, Oct 03, 2019

By: Steven A. Braun, CPA

 

The Tax Cuts and Jobs Act added Section 461(l) to the Internal Revenue Code (“the Code”), which limits the excess business losses of noncorporate taxpayers.  The limitation applies to sole proprietors, partnerships, S Corporations, limited liability companies, estates and trusts for years beginning after December 31, 2017 and before January 1, 2026.

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Carryback and Carryforward Periods for NOLs – A Tax Lifeline for Business Owners

Posted on Mon, May 11, 2015

With the economy continuing to trend upward since the 2008 recession, many businesses have returned to profitability.  No business owner ever wants to operate at a loss, but sometimes the economy and other factors dictate otherwise.  However, a loss isn’t always a bad thing when you’ve been profitable in prior years or anticipate large profits in future periods.

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