Implement Section 461(l) excess business loss limitation #7298
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Closes #7015 - Add partnership/S-corp losses to loss_ald calculation - Apply Section 461(l) threshold correctly to business losses only - Capital losses now handled separately (Section 1211 $3,000 limit) - Add comprehensive integration tests for excess business loss limitation Co-Authored-By: Claude Opus 4.5 <noreply@anthropic.com>
Codecov Report✅ All modified and coverable lines are covered by tests. Additional details and impacted files@@ Coverage Diff @@
## main #7298 +/- ##
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+ Coverage 72.72% 100.00% +27.27%
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Files 3757 1 -3756
Lines 54115 21 -54094
Branches 267 0 -267
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- Hits 39353 21 -39332
+ Misses 14742 0 -14742
+ Partials 20 0 -20
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- Add changelog entry for Section 461(l) excess business loss limitation - Update WV HEPTC test to reflect correct AGI calculation with Section 461(l): - Partnership/S-corp losses now limited by Section 461(l) ($610,000 for MFJ) - Capital losses separately limited by Section 1211 ($3,000) - Total loss_ald = $613,000, resulting in AGI of -$613,000 Co-Authored-By: Claude Opus 4.5 <noreply@anthropic.com>
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Summary
loss_aldChanges
Modified
policyengine_us/variables/gov/irs/income/taxable_income/adjusted_gross_income/above_the_line_deductions/loss_ald.py:Added
policyengine_us/tests/policy/baseline/gov/irs/income/taxable_income/adjusted_gross_income/above_the_line_deductions/loss_ald.yaml:Test
Closes #7015