1. EachPod

255 \\ The Permanent Tax Rule That Limits Your Losses (New Tax Laws Decoded Part 7)

Author
Tiffany Phillips - CPA, Small Business Tax Expert, Financial Expert, Tax Savings Strategist
Published
Mon 28 Jul 2025
Episode Link
https://smallbusinessfinance.podbean.com/e/255-new-tax-laws-decoded-series-the-permanent-loophole-that-turns-taxes-into-wealth-part-7/

Think business losses always help reduce your taxes? Not anymore. In this episode, we break down the now permanent Excess Business Loss Limitation under Section 461(l) and how it restricts high-income entrepreneurs from using all their business losses to offset income.

We explain how it applies to multi-entity owners, real estate investors, and startup founders, and how you can work around the limits with smarter planning.

You’ll learn when losses are deductible, how to work with Net Operating Losses (NOLs), and why entity structure and timing matter more than ever. This is a critical update every serious business owner must understand.


 


Next Steps:


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