Don Farmer's Loss Limitations: §461(l), Basis, At-Risk & PALCoordination

Overview

This course provides a comprehensive framework for navigating the multiple loss limitation regimes applicable to business and investment activities. Participants will learn the correct sequencing and coordination of basis, at-risk, passive activity, and excess business loss rules. The course emphasizes compliance accuracy and planning strategies to maximize allowable losses.

Highlights

• Overview of Federal Loss Limitation Framework • Order and Coordination of Loss Limitation Rules • Excess Business Loss Rules Under IRC §461(l) • Basis and At-Risk Limitations • Passive Activity Loss (PAL) Rules • Loss Carryforwards and Release Events • Compliance and Reporting Considerations

Designed For

Tax Professionals

Objectives

1. Identify and apply the correct order of loss limitation rules 2. Analyze §461(l) excess business loss limitations 3. Coordinate basis, at-risk, and PAL restrictions 4. Evaluate loss carryforward and release events 5. Avoid common reporting and sequencing errors