Excess business loss limit
~$256,000 / $512,000
Can You Write Off Excess Business Loss Limit?
Short answer: Losses above about $256,000 single or $512,000 joint can't offset other income this year; they carry forward as an NOL.
Business losses can offset other income, but excess business losses above about $256,000 single / $512,000 joint (2026) become a net operating loss carryforward limited to 80% of future taxable income.
Records to keep: Keep receipts or invoices, proof of payment, and a note of the business purpose for each expense.
Excess business loss limit
~$256,000 / $512,000
General Business
Losses above about $256,000 single or $512,000 joint can't offset other income this year; they carry forward as an NOL.
Business justification
Losses above about $256,000 single or $512,000 joint can't offset other income this year; they carry forward as an NOL. Business losses can offset other income, but excess business losses above about $256,000 single / $512,000 joint (2026) become a net operating loss carryforward limited to 80% of future taxable income.
Category
- Tax Write-Off Rules