California Excess Business Loss Limits for 2026: How Federal and State Rules Differ

California has confirmed its 2026 excess business loss thresholds at $320,000 for most individual filers and $640,000 for married taxpayers filing jointly. These limits differ significantly from the federal amounts under IRC Section 461(l). Learn how the rules affect business owners, S corporation shareholders, partners, real estate investors, and future loss carryovers.