The 2026 EBL Limit is Much Lower Than the 2025 Limit
OBBBA reset the Excess Business Loss Limits beginning in 2026
The original Tax Cuts and Jobs Act of 2017 introduced the Excess Business Loss limitations under Section 461. Farmers who incur large business losses could see the use of those losses in the current year be curtailed.
The original limit was $250,000 single / $500,000 married, but it was indexed to inflation and for 2025, the limits were $313,000 single / $626,000 married.
