California Excess Business Loss Limits for 2026: Why Your Federal and State Deductions May Differ
California's 2026 excess business loss limits differ significantly from federal rules. The FTB confirmed thresholds of $320,000 for individual filers and $640,000 for joint filers, compared with federal limits of $256,000 and $512,000. Learn how the differences affect business owners, current deductions, and future loss carryovers.
Section 1231 Losses: When Rental and Business Property Losses Are Ordinary
A loss on rental or business property can receive favorable ordinary loss treatment under Section 1231, but that does not always mean the entire loss is immediately deductible. Learn how annual netting, passive activity rules, basis and at risk limits, excess business loss rules, depreciation recapture, and the five year lookback affect the final tax result.