The excess loss limitations apply to owners of all of the following entities except which of the following?
A)C corporations
B)S corporations
C)Entities taxed as partnerships
D)Single-member LLCs (owned by an individual taxpayer)

Question

Quizplus · Accepted Answer

Excess loss limitations generally do not apply to C corporations. They are designed to limit the ability of individual taxpayers to use business losses to offset other types of income, and thus typically apply to pass-through entities like S corporations, partnerships, and single-member LLCs, where the business income or loss passes through to the individual owners' tax returns. C corporations, on the other hand, are taxed at the entity level, so the concept of excess loss limitations doesn't apply in the same way.

The Excess Loss Limitations Apply to Owners of All of the Following