Shey is single and operates two businesses.This year,business A generated $300,000 of taxable profit.Business B generated a $(625,000)loss.How much of Shey's business loss is not currently deductible due to the excess business loss limitation?

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Quizplus · Accepted Answer

The excess business loss limitation for 2023 is $270,000 for single taxpayers. Shey's total business loss is $325,000 ($300,000 profit - $625,000 loss). The deductible loss is limited to $270,000, so $55,000 ($325,000 - $270,000) is not currently deductible.

Shey Is Single and Operates Two Businesses