Minimizing Your Taxes and Managing Your Complex Affairs

Tax Tips, Finance Tips, Fun Events

Tips for Individuals, Businesses and Charities. Fun Events.

Business Losses Are Limited to $500,000 Per Couple

For the 2018 to 2025 tax years, taxpayers can only deduct up to $250,000 ($500,000 for married taxpayers) of business losses against nonbusiness income (such as interest, dividends, capital gains).

Amounts above the threshold are considered “excess business losses” and carried forward and treated as part of the taxpayer’s NOL carryforward in subsequent taxable years.

These NOL carryforwards are also subject to the new 80% NOL limitation where only 80% percent of your income can be offset by NOL carryforwards.


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Richard Pon CPA, CFP