Losses Under the Tax Cuts and Jobs Act 2024

Overview

With the bull market in real estate, securities, and even cryptocurrencies since the enactment of the Tax Cut and Jobs Act, the ability for individuals to take Section 165 losses has been more academic than practical. With the bear market, these limitation provisions have come back to haunt many taxpayers. This program will examine the limitations in the code, the Treasury Regulations, and case law that provide a fuller understanding of when exactly an individual can deduct a section 165 loss.

Highlights

• Individual losses
• Determining when a loss is personal vs a business or for-profit loss
• What happens if a client invested in a Ponzi scheme?
• What constitutes a realistic possibility of recovery?
• Timing issues for claiming losses

Prerequisites

None

Designed For

CPAs, attorneys, Financial professionals, EAs and professional staff.

Objectives

• Be able to quickly identify when there might be an option for an individual client to take a section 165 loss despite the Tax Cut and Jobs Act limitations on personal losses
• Learn how to determine if there exists a timing barrier to taking the deduction because the client may still have a realistic possibility of recovery
• Recognize when there may be a planning opportunity for recognizing certain losses if the individual provisions of the Tax Cut and Jobs Act expire at the end of 2025

Preparation

Some knowledge of income tax is preferred.

Notice

This course is offered by a 3rd party vendor. Login instructions will not be accessible in the My CPE Tracker section of the ISCPA website. Login instructions will be emailed directly to you by California Education Foundation (CalCPA).