Enrolled Agent Exam [Part 2] 64, Excess Business Losses — §461(l)

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - How to calculate an excess business loss using the inflation-adjusted thresholds for different filing statuses. - That any disallowed excess business loss is treated as a Net Operating Loss (NOL) carryforward to subsequent tax years. - The critical ordering rule: basis, at-risk, and passive activity loss limitations must be applied before the §461(l) limitation. - Why you must aggregate all trade or business income and losses before comparing the net amount to the annual threshold. - How the excess business loss limitation applies only to noncorporate taxpayers and is calculated on Form 461. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep