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posted Jun 1, 2019 11:45:35 AM

Mi State Requires me to file a separate form for "Excess business loss". What is "Excess Business Loss" ?

I did take the special depreciation that the IRS allowed this year for purchase of a new truck that is Sch C 100% bs. use. Could that have triggered "excess losses" for MI?

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Level 3
Jun 1, 2019 11:45:37 AM

From the IRS website: https://www.irs.gov/newsroom/irs-issues-guidance-on-changes-to-excess-business-and-net-operating-los...

"An excess business loss is the amount by which the total deductions from all trades or businesses exceed a taxpayer’s total gross income and gains from those trades or businesses, plus $250,000, or $500,000 for a joint return.

Excess business losses that are disallowed are treated as a net operating loss carryover to the following taxable year.

See Form 461 and instructions, available soon, for details."

1 Replies
Level 3
Jun 1, 2019 11:45:37 AM

From the IRS website: https://www.irs.gov/newsroom/irs-issues-guidance-on-changes-to-excess-business-and-net-operating-los...

"An excess business loss is the amount by which the total deductions from all trades or businesses exceed a taxpayer’s total gross income and gains from those trades or businesses, plus $250,000, or $500,000 for a joint return.

Excess business losses that are disallowed are treated as a net operating loss carryover to the following taxable year.

See Form 461 and instructions, available soon, for details."