Question
2018 California 540 "Excess business loss"
On the 2018 California form 3805V, page 4, Lacerte shows that the carried loss has been reduced by $500,000 under the Excess Business Loss rules. However, under the Loophole Closure Act (AB 91), the Excess Business loss limitations apply only to years after 2018.
This is explained in the Franchise Tax Board's "Tax News", the September 2019 issue, (item 13). Here is the link: https://www.ftb.ca.gov/about-ftb/newsroom/tax-news/september-2019/ab-91-loophole-closure-and-small-business-and-working-families-tax-relief-act-of-2019.html
Why is this happening?
