Business Loss Limitation Calculator
Calculate multiple limitations on business loss deductions.
Income Sources
Limitation Amounts
Excess Loss Threshold:$ 305000
Limitation Hierarchy
| Limitation Type | Amount Available | Suspended Loss |
|---|---|---|
| Basis | $ 200000 | $ 300000 |
| At-Risk | $ 200000 | $ 0 |
| Passive | $ 30000 | $ 170000 |
| Excess Business Loss | $ 305000 | $ 0 |
| Total Suspended | $ 470000 |
Summary
Business Loss:$ 500000
Total Income:$ 180000
Allowed Loss:$ 200000
Net Taxable:$ -20000
Total Suspended:$ 470000
Tax Benefit Lost:$ 112800
Recommendation
Business loss of $500000 partially limited. Total suspended: $470000. Basis suspended: $300000. At-risk suspended: $0. Passive suspended: $170000. NOL carryforward: $0. Tax benefit deferred: $112800. Increase basis through capital contribution or debt assumption. Consider REPS qualification or generate passive income.
Loss Limitation Key Points
- Limitations applied in order: basis → at-risk → passive → excess
- Basis: owner's investment in entity
- At-risk: actual economic investment
- Passive: only offsets passive income
- Excess business loss: annual threshold
- C corps not subject to excess loss limit
- Suspended losses carryforward
- Track on K-1 and Form 8582
- Plan to increase basis/at-risk
- REPS eliminates passive limit