22. Department of the Treasury · Minor · Needs Congress
Raise the business loss limitation to at least $500,000
Printed page 697 22. Department of the Treasury
“To encourage entrepreneurship, the business loss limitation should be increased to at least $500,000.”
What has happened
- Not started
Public Law 119-21 addressed the excess business loss limitation and did not raise it. Section 70601 made the section 461(l) limitation permanent by striking its 2029 sunset and reset the inflation base year from 2017 to 2024, leaving the statutory threshold at $250,000 ($500,000 for a joint return). Nothing in the enrolled text raises the single-filer amount to $500,000.
Research log
What was searched, and what didn’t count as evidence
Research notes
Reading recorded for the consistency pass: the Quote says “the business loss limitation should be increased to at least $500,000” without naming a filing status. The section 461(l) base amounts are $250,000 single and $500,000 joint, so the joint amount already meets the number. This is read as an ask to raise the single-filer threshold, which is what the Mandate’s “to encourage entrepreneurship” framing points at, and it was not raised. Not flagged pre_satisfied: the ask is for an increase, and no increase happened.
Sec. 70601(b) resets the cost-of-living base year for the threshold from calendar 2017 to calendar 2024 for taxable years after 2025, which lowers the indexed amount relative to the 2025 figure rather than raising it.
- Action
- expand
- Object
- business loss limitation
- ID
- 1928