Understanding how tax loss limitations work is critical for accurate tax planning and compliance. While many taxpayers assume business losses are fully deductible, several layered IRS restrictions often reduce or defer those deductions. These include basis limitations, at-risk tests, passive activity restrictions, and the excess business loss limitation—all of which can significantly impact a taxpayer’s return.
This CE course breaks down the four key loss limitation rules and demonstrates how they operate together in practice. Participants will learn to analyze the interplay between basis, at-risk, and passive activity rules, and apply the excess business loss limitation under IRC §461(l) with confidence. Real-world examples and planning techniques are included to link complex technical provisions with practical client scenarios.
Topics Covered:
Basis limitation rule application
At-risk rule mechanics
Passive activity and material participation standards
Excess business loss limitation under IRC §461(l)
OBBB implications for loss deductions
Learning Objectives:
Identify and describe the four primary loss limitation rules affecting taxpayers.
Explain how basis and at-risk provisions limit deductible business losses.
Evaluate passive activity loss rules, including the standards for material participation.
Interpret the excess business loss limitation under IRC §461(l).
Apply strategic planning methods to sequence and optimize the use of loss limitations.
Credits and Other information:
Recommended CPE credit – 2.0
Recommended field of study – Taxes
Session Prerequisites and preparation: None
Session learning level: Basic
Location: Virtual/Online
Delivery method: Group Internet Based
Attendance Requirement: Yes
Session Duration: 120 Minutes
Who Will Benefit:
CPA
Enrolled Agents (EAs)
Tax Professionals
Attorneys
Other Tax Preparers
Finance professionals
Financial planners
About Our Speaker
Jason Dinesen , EA
President, Dinesen Tax & Accounting, P.C.
Jason Dinesen (LPA, EA) is an entrepreneur, tax expert, and CPE Presenter. Dinesen brings over 15 years of experience helping individuals and businesses with accounting, bookkeeping, tax preparation, and business advisory in various industries. Dinesen is a regular CPE Presenter at MYCPE ONE. He has coached more than 200k+ accounting, taxes, and HR professionals on various topics of accounting, individual taxation, corporate taxation, and professional ethics. Jason has developed a strong following within the professional community for tax-related subjects. Dinesen is known for sharp tax interpretations, and he quickly brings his analysis of the latest tax updates and IRS guidance to the professional community.
