Statute section

IRC section 461

General rule for taxable year of deduction

Country

United States

Section

461

Updated

2026-05-20

Operative text

Section 461 governs the year for which deductions are taken. Section 461(l), added by TCJA, limits excess business losses for non-corporate taxpayers; disallowed losses carry forward as NOLs.

Amendment history

2017-12-22

Pub. L. 115-97

TCJA added Section 461(l) limiting excess business losses for non-corporate taxpayers.

2022-08-16

Pub. L. 117-169

Inflation Reduction Act extended the Section 461(l) limit through 2028.

Cross-references

26 U.S.C. 172

Related guides

excess-business-loss-guide

Related citations

Computed from the cross-reference graph. Links open the related entity on this site.

This entry cites

StatuteIRC §172

Cited by

StatuteIRC §446

Primary sources

26 U.S.C. section 461Verified 2026-05-20

Important disclaimer

This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.