December 8, 2026

Webcast

Don Farmer's Loss Limitations: §461(l), Basis, At-Risk & PAL Coordination

December 8, 2026
Webcast

Don Farmer's Loss Limitations: §461(l), Basis, At-Risk & PAL Coordination

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    Instructor

    Nick
    Preusch

    View Bio

    Nick Preusch

    Bio

    Nick Preusch's, CPA, JD, LLM, primary focus is performing tax services for high wealth individuals and mid-to-large business entities. His responsibilities include tax research related to complex business transactions and tax return preparation and review. Nick also works closely with businesses to find tax efficiencies through ever-changing tax legislation.

    Nick is an IRS attorney at the IRS National Office in Washington, DC, where he was the lead attorney for several significant tax ethics cases. He is a licensed attorney in New York and a certified public accountant in Virginia. Nick earned an LLM in Taxation from Georgetown University, a JD from Case Western Reserve University, and an MS in Accounting from the University of Connecticut.

When a business or investment activity produces a loss, several limitation regimes stand between that loss and a current deduction, and applying them in the wrong order can produce the wrong answer. This course provides a comprehensive framework for navigating those rules. Participants will examine the correct sequencing and coordination of the basis, at-risk, passive activity, and §461(l) excess business loss limitations, along with the treatment of carryforwards and release events. The course emphasizes compliance accuracy and planning strategies to maximize allowable losses.

Learning Objectives

1. Apply the correct ordering of the loss limitation rules

2. Calculate the §461(l) excess business loss limitation

3. Determine how basis, at-risk, and PAL restrictions interact

4. Analyze the treatment of loss carryforwards and release events

5. Identify common reporting and sequencing errors

Major Topics

• Overview of the federal loss limitation framework

• Order and coordination of loss limitation rules

• Excess business loss rules under IRC §461(l)

• Basis and at-risk limitations

• Passive activity loss (PAL) rules

• Loss carryforwards and release events

• Compliance and reporting considerations

Things to Know About This Course

Course Level

  • Intermediate

Professional Area of Focus

  • Tax

Prerequisites

Working knowledge of federal income taxation of individuals and pass-through entities, including partner and shareholder basis.

Advanced Preparation

None

Intended Audience

CPAs and tax professionals involved in the world of tax.

Provider

Don Farmer Tax Education

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