Under the new tax law, for 2018 through 2025, the maximum business loss that you can claim in one year is $250,000 ($500,000 for married filing jointly) . If your loss exceeds that limitation, the excess is carried over to the following year. The first $250,000 or $500,000 of business loss must be claimed in the year that the loss occurred. TurboTax does not support the business loss limitation.
An excess business loss is separate from a net operating loss, but in the following year the carryover of an excess business loss is treated the same as a net operating loss carryover.
