Refund Opportunities for Excess Business Losses

August 10, 2020

The Tax Cuts and Jobs Act (TCJA) limited the ability of noncorporate taxpayers — such as sole proprietors, partnerships and S corporations — to offset business losses against income from other sources. For 2018 through 2025, the TCJA limits deductions of “net business losses” to $250,000 ($500,000 for joint filers), adjusted for inflation. Disallowed losses may be carried forward to future tax years according to net operating loss (NOL) rules.

This year’s Coronavirus Aid, Relief and Economic Security (CARES) Act suspended these limits for 2018 through 2020, making business losses fully deductible in those years. If your losses were reduced on your 2018 or 2019 tax returns, you may have an opportunity to amend those returns and claim a refund of overpaid taxes during those years.

This material is generic in nature. Before relying on the material in any important matter, users should note date of publication and carefully evaluate its accuracy, currency, completeness, and relevance for their purposes, and should obtain any appropriate professional advice relevant to their particular circumstances.

Share Post:

By Meyers Brothers Kalicka April 23, 2026
Nonprofits with investment portfolios should consider adopting effective spending policies. There is no one optimal policy that should be followed, the best option will vary on a variety of factors.
By Meyers Brothers Kalicka April 13, 2026
In recent research, it is estimated that one hour of volunteer time is worth $34.79 and could be more valuable depending on the location and when provided by certain professionals.
By Meyers Brothers Kalicka April 13, 2026
Tax Tip: Donors should consider leaving an asset to a single charity, such as a private foundation, to determine its ultimate disposition.
Show More