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Tax Relief: New Rules for Individuals with Lower Income.

This bill changes how individuals can deduct business losses. If your modified adjusted gross income is under $400,000, you can deduct more past losses, potentially lowering your taxes. These changes apply starting from the 2021 tax year.
Key points
Individuals with income up to $400,000 can fully deduct past business losses, without the previous 80% income limit.
This change may result in lower taxes for eligible individuals who incurred business losses.
The new rules are effective for tax years beginning after December 31, 2020.
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Additional Information
Print number: 117_HR_2450
Sponsor: Rep. Newman, Marie [D-IL-3]
Process start date: 2021-04-12
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

To amend the Internal Revenue Code of 1986 to except certain individuals from the 80 percent taxable income limitation on net operating loss carryovers.

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_2450.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-04-12.

What are the main provisions?

Key points include:

  • Individuals with income up to $400,000 can fully deduct past business losses, without the previous 80% income limit.
  • This change may result in lower taxes for eligible individuals who incurred business losses.
  • The new rules are effective for tax years beginning after December 31, 2020.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Newman, Marie [D-IL-3].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-27.

CATEGORIES

Taxes