Planning to Deduct for Losses this Tax Season? Be Sure to Read the Fine Print.
Deducting losses is a high-priority item for taxpayers in the highest marginal income tax bracket. The topic will be especially relevant during the 2022 tax compliance season because of recent declines in the stock market and a challenging overall business environment.
With that said, you shouldn’t assume that every business operating loss or capital loss on investments will lead to a 1:1 deduction on your tax return. There are significant limitations and qualifications surrounding these losses, so it’s critical to understand the details.
In this article, we provide a primer on some of the loss limitations that are most likely to affect high income taxpayers during the upcoming tax filing season.
Not All Business Losses Are Tax Deductible
Rising interest rates and other effects of surging inflation have created a challenging environment across industries. […]