Beware of the 80% Cap on Net Operating Losses (“NOLs”)
5/8/2018
Comments (0)
Comments (0)
Beware of the 80% Cap on Net Operating Losses (“NOLs”)
Under the TCJA NOLs from a prior year can only offset 80% of your business profits for future years, but you can carry them forward indefinitely. NOLs also can no longer be carried back to offset income or create a refund position for earlier years.
There is also an Excess Business Loss Limitation of $250,000 for single filer sand $500,000 for joint filers, which effectively caps the amount of losses you can apply against profits and gains, even for active businesses.
Category: Tax Law
Labels:
There are no comments.
Post a comment
Post a Comment to "Beware of the 80% Cap on Net Operating Losses (“NOLs”)"
To reply to this message, enter your reply in the box labeled "Message", hit "Post Message."