Excess Business Losses of Noncorporate Taxpayers

When all business income is added together for a tax year, and the result is a net loss, the amount of loss that can be deducted in the current tax year is limited.  The threshold for the excess business loss was created by TCJA and is adjusted for inflation every year.  Any additional business loss over this threshold amount must be carried forward to the next year as an NOL.  For 2019, the threshold for excess business loss is $255,000 ($250,000 in 2018) for every filing status except Married Filing Jointly (MFJ).  For MFJ returns, the threshold is $510,000 ($500,000 in 2018).  


Cathy Fisher

Common Cents Bookkeeping and Tax Preparation

Serving Henderson, NC, Buncombe County, Polk County, Transylvania County


P: 828-595-2835

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