Sec. 2304. MODIFICATION OF LIMITATION ON LOSSES FOR TAXPAYERS OTHER THAN CORPORATIONS

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## SEC. 2304 MODIFICATION OF LIMITATION ON LOSSES FOR TAXPAYERS OTHER THAN CORPORATIONS ###

(a)In General **[**[26 U.S.C. 461](/us/usc/t26/s461)**]** Section 461(l)(1) of the Internal Revenue Code of 1986is amended to read as follows: > > #### “(1) Limitation > > In the case of a taxpayer other than a corporation— > > > ##### “(A) > > for any taxable year beginning after December 31, 2017, and before January 1, 2026, subsection

(j)(relating to limitation on excess farm losses of certain taxpayers) shall not apply, and > > > ##### “(B) > > for any taxable year beginning after December 31, 2020, and before January 1, 2026, any excess business loss of the taxpayer for the taxable year shall not be allowed.” > . ###

(b)Technical Amendments Relating to Section 11012 of Public Law 115-97 ####

(1)Section 461(l)(2) of the Internal Revenue Code of 1986 is amended by striking “a net operating loss carryover to the following taxable year under section 172” and inserting “a net operating loss for the taxable year for purposes of determining any net operating loss carryover under section 172(b) for subsequent taxable years”. ####

(2)Section 461(l)(3)(A) of such Code is amended— #####

(A)in clause (i), by inserting “and without regard to any deduction allowable under section 172 or 199A” after “under paragraph (1)”, and #####

(B)by adding at the end the following flush sentence:"“Such excess shall be determined without regard to any deductions, gross income, or gains attributable to any trade or business of performing services as an employee.”". ####

(3)Section 461(l)(3) of such Code is amended by redesignating subparagraph

(B)as subparagraph

(C)and by inserting after subparagraph

(A)the following new subparagraph: > > ##### “(B) Treatment of capital gains and losses > > > ###### “(i) Losses > > Deductions for losses from sales or exchanges of capital assets shall not be taken into account under subparagraph (A)(i). > > > ###### “(ii) Gains > > The amount of gains from sales or exchanges of capital assets taken into account under subparagraph (A)(ii) shall not exceed the lesser of— > > > ###### “(I) > > the capital gain net income determined by taking into account only gains and losses attributable to a trade or business, or > > > ###### “(II) > > the capital gain net income.” > . ###

(c)Effective Dates **[**[26 U.S.C. 461 note](/us/usc/t26/s461)**]** ####

(1)In general The amendments made by subsection

(a)shall apply to taxable years beginning after December 31, 2017. ####

(2)Technical amendments The amendments made by subsection

(b)shall take effect as if included in the provisions of Public Law 115-97 to which they relate.

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