Loss Limitation Provisions Applicable to Taxpayers Other Than C Corporations (LLPR)

The Tax Cuts and Jobs Act added Section 461(l) to the Internal Revenue Code, limiting losses previously available. To the extent a taxpayer has an “excess business loss” for the tax year under Section 461(l), that portion of the taxpayer’s overall loss becomes a net operating loss (NOL) carried forward to future tax years and subject to the new rules that govern NOL generated after 2017.  Many owners of S corporations, partnerships and limited liability companies are now subject to four loss limitation provisions. This program covers each loss limitation provision and how they relate to each other.

• How the new Section 461(l) loss limitation provisions work
• The new net operating loss limitation rules and how they relate to Section 461(l)
• Determination of a taxpayer’s basis in a pass-through entity
• Suspended losses and deductions due to basis limitations
• How at-risk rules operate to limit loss deductions
• Passive activity loss rules that suspend losses

• Understand the four loss limitation rules
• Advise clients concerning the implementation of the new Section 461(l) loss limitation provision