CARES Act – Suspension of Non-Corporate Loss Limitation

The 2017 tax reform bill disallowed the deduction of “excess business losses” by a non-corporate taxpayer during taxable years 2018 through 2026. The CARES Act removes this limitation for 2018, 2019, and 2020. It will instead apply for taxable years 2021 through 2026.

OUR BOTTOM LINE: Facts and circumstances determine if this applies to you.