• Skip to primary navigation
  • Skip to main content
  • Skip to footer
716-633-1373 8321 Main Street, Williamsville, NY 14221
Tronconi Segarra & Associates

Tronconi Segarra & Associates

Williamsville, Buffalo & Western New York CPA

  • Client Toolkit
  • Request A Proposal
  • Pay Securely Online
  • Home
  • About
  • Our Team
  • Services
    • Accounting & Auditing
      • Financial Statement Auditing
      • Fraud/Forensic Accounting & Auditing
      • Internal Auditing
      • Performance Auditing
      • Governance Services
    • Tax Services
      • Business Taxation
      • U.S./Canadian Border Services
      • Cost Segregation Studies
      • Estates/Trusts/Private Foundations
      • Individual Taxation
      • International Tax
      • State & Local Tax
      • Exempt Organizations
      • Employee Benefit Plan Services
    • Small Business
      • Bookkeeping / General Ledger Services
      • Franchisee Services
      • Accounting for PPP, EIDL & Other COVID-19 Relief Programs
    • Outsourcing
    • State & Local Tax
      • Services – Manage Risk
        • Nexus Study
        • Registration
        • Voluntary Disclosure/Amnesty
        • Tax Research
        • Tax Compliance
        • Audit Defense
      • Services – Add Value
        • Refund Study
        • Utility Study
        • Credits & Incentives
        • Transaction Planning
        • Due Diligence
        • Outsourcing
      • Insights
    • Transaction Advisory Services (M&A)
    • International / Cross-Border
      • International Tax
    • Consulting Services
      • Executive Level Services
      • Litigation Support Services
      • Valuation Services
      • Succession Planning
    • Governmental Services
  • Industries Served
  • COVID-19
    • ERTC Assistance
    • COVID-19 Resource Center
      • CARES Act
      • Families First Coronavirus Response Act (FFCRA)
      • Coronavirus Preparedness and Response Supplemental Appropriations Act
    • COVID-19 Tax Relief
    • Unemployment Insurance Benefits
    • State & Local Grant and Aid Programs
    • COVID-19 Webinars
    • COVID-19 Blog Posts
    • Paycheck Protection Program: Forgiveness Calculation Services
  • Blog
  • Careers
  • Contact

Modification of Limitation of Losses for Non-Corporate Taxpayers

May 11, 2020

Carrying on our tradition of providing you with Solutions Beyond the Obvious, we are pleased to bring you our “Ask the Experts” series of articles. In these articles, our Tronconi Segarra & Associates tax experts identify and explain the significant tax changes that were passed as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act which can provide additional relief for businesses and individuals facing economic hardship as the result of the coronavirus pandemic. Contact your Tronconi Segarra & Associates tax advisor for more information about any of the topics discussed in these articles.

Stefan D. Cwynar, CPA
Manager

Under the Tax Cuts and Jobs Act of 2017, a non-corporate taxpayer is not allowed to claim a deduction for excess business losses for tax years beginning after December 31, 2017, and before January 1, 2026. An excess business loss is the amount by which total deductions attributable to a taxpayer’s trades or businesses exceed the taxpayer’s total gross income and gains attributable to those trades or businesses plus $250,000 ($500,000 for married filing jointly). Any disallowed excess business loss is treated as part of the taxpayer’s net operation loss carryover to the following year.

Excess business losses can be incurred through various activities. These include activities reported on Form 1040, Schedule C, capital gains and losses from business activities, gains and losses from sales of business property, certain Form 1040, Schedule E activities (including rental income treated as business income, and pass-through activity), activities reported on Form 1040, Schedule F and the activity of being an employee.

The CARES Act has postponed the limitation on excess business losses for tax years beginning in 2018 through 2020.  This includes the postponement of excess farm loss rules as well.  For taxpayers who were subject to the excess business loss limitation in 2018, there is an option to file an amended 2018 tax return to allow the entirety of the loss and get a refund of tax dollars.

Please contact your Tronconi Segarra & Associates tax advisor for more information on this or any tax matter. If you do not have a Tronconi Segarra & Associates tax advisor, please call 716.633.1373 or Contact Us through our website with your question.

 

 

This article has been prepared for general guidance on matters of interest only; it does not constitute professional advice. You should not act upon the information contained in this article without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy of completeness of the information contained in this article; and, to the extent permitted by law, Tronconi Segarra & Associates LLP, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this article or for any decision based on it.

Filed Under: CARES Act, COVID-19, News, Tax Relief

Contact Us

  • This field is for validation purposes and should be left unchanged.

Footer

Contact Information

Tronconi Segarra & Associates LLP
8321 Main Street
Williamsville, NY 14221
Phone: 716-633-1373
Fax: 716-633-1099

Ulrich City Centre
175 Walnut Street, Suite 2
Lockport, NY 14094
Phone: 716.438.2190
Fax: 716.438.2450

Contact Us

Links

  • Home
  • About
  • Services
  • Industries Served
  • Leadership Team
  • Blog
  • Careers
  • Contact

Copyright © 2023 Tronconi Segarra & Associates · Terms of Use · Privacy Policy · Site by OMA Comp