EVENT DESCRIPTION
Tax rules on business losses aren’t always as straightforward as they sound. While many taxpayers assume they can deduct their entire loss, the IRS has several limitation layers that often-cut deductions short. From basis issues to passive activity restrictions, knowing where the rules overlap and how they apply is crucial for tax professionals helping clients protect their bottom line.
This CE course unpacks the four main loss limitation rules and shows how they interact in real-world practice. You’ll gain practical guidance on basis and at-risk limits, navigate passive activity restrictions, and explore the excess business loss limitation under IRC §461(l). With examples and planning strategies, the course connects technical regulations to everyday advisory work, helping you spot opportunities and avoid costly mistakes.
Major Topics:
Basis limitation rule application
At-risk rules in practice
Passive activity restrictions explained
Excess business loss limitation
OBBB impact on loss deductions
By the end, you’ll have a structured roadmap for applying the rules sequentially and advising clients with confidence. Whether you’re dealing with partnerships, S corporations, or individual clients, this CE course will equip you with the tools to manage complex loss limitation scenarios effectively.
EVENT OBJECTIVE
• Identify the four primary loss limitation rules for taxpayers.
• Explain how basis and at-risk rules restrict deductible losses.
• Analyze passive activity rules, including material participation standards.
• Discuss the excess business loss limitation under IRC §461(l).
• Explore planning strategies for applying loss limitations sequentially.
