Comprehensive Problem. Michael Rambo, single and calendar year taxpayer, is the sole owner of Slice-It Pizza Company, a sole proprietorship. Michael materially participated in the activity. In 2018, Slice-It Pizza reported revenues of \(\$ 600,000\) and deductions of \(\$ 410,000\), exclusive of a net operating loss deduction of \(\$ 150,000\).

The NOL was carried forward from 2017. For tax purposes, Michael reports revenues and expenses of Slice-It Pizza on Schedule C of Form 1040-Individual Income Tax Return. If Michael has no other taxable income, deductions or credits in 2018, other than those listed above, what tax effect does the \(\$ 150,000\) NOL have on his 2018 tax return? Ignore liability for self-employment taxes.