Episode 48: Tax Planning with Losses

Presenters/Authors

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Host Damien Martin sits down with BKD’s James Anderson to cut through the complexities of the loss limitation rules and demonstrate why you need an understanding of both new and existing tax law to apply these rules after the Tax Cuts and Jobs Act (TCJA). Join Damien and James as they break down the hobby and passive activity loss rules, explain how these rules applied in a recent United States Tax Court case and discuss changes under the TCJA.

Here’s a look at what’s inside our latest episode:
• Overview of the hobby loss rules @01:06
• How hobby losses changed under the TCJA @02:22
• Robison v. Commissioner, T.C. Memo. 2018-88 @03:50
• Applying the nine tests under the hobby loss rules in Robison @05:39
• Applying the hobby loss rules in real life @08:13
• Tax basis and at-risk loss limitations @15:08
• Overview of the passive activity loss rules and how they applied in Robison @17:21
• What losing the case means for the taxpayers in Robison @23:24
• The new excess business loss limitation under the TCJA @25:40
• This was a relatively simple case @27:41
• The TCJA layered on top of the existing tax law @30:20
• Why tax accountants are popular at cocktail parties @34:00
• James’s key takeaways from this case @35:52
• Loss limitations and year-end planning @38:37

BIO FOR GUEST

James Anderson

James Anderson is a partner in BKD’s Lincoln, Nebraska, practice and a member of BKD National Construction & Real Estate Group, BKD National Manufacturing & Distribution Group and the firm’s tax committee. James is experienced in providing corporate and individual taxation assistance to construction companies, financial institutions, manufacturers and retailers across the Midwest. He also consults with clients regarding accounting method changes, multistate taxation, choice-of-entity analyses, tax controversy support and business combinations.

Connect with James on LinkedIn

ADDITIONAL RESOURCES

An Interview With David Kirk: Beware The New Excess Business Loss Limitation by Tony Nitti (Forbes)

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