Max, a single taxpayer, has a $270,000 loss from his sole proprietorship. How much of this loss is deductible after considering the excess business loss rules?

Name: Max, a single taxpayer, has a $270,000 loss from his sole proprietorship. How much of this loss is deductible after considering the excess business loss rules?
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Quizplus · Accepted Answer

The nondeductible excess business loss is $20,000 (the taxpayer's aggregate business deductions ($270,000) over the sum of his business gross income $0 and $250,000).

Max, a Single Taxpayer, Has a $270,000 Loss from His