4-16 Net Operating Losses (LO 4.9) Tyler, a single taxpayer, generates business income of $3,000 in 2020. In 2021, he generates an NOL of $5,000. In 2022, he generates business income of $1,000. In 2023, his business generates income of $1,100. What is Tyler's NOL carryforward into 2024, if any? His 2021 NOL cannot be carried back X and can only be carried forward > X . He can offset $ X of his 2022 income leaving a $ X NOL to carryforward X into 2023. He can offset $ X of his 2023 income leaving an NOL carryforwa Alpha-numeric input field X into 2024. Feedback Check My Work The net operating loss provision is primarily designed to provide relief for trade or business losses. Generally, only losses from the operation of a trade or business, casualty and theft losses, or confiscateon losses can generate a net operating loss. The rules related to NOLs have changed three times in recent years, and with each change, NOLs are treated slightly differently. The three periods are: (1) the Pre- 2018 period, (2) the 2018-2020 period (due to COVID-19 provisions), and (3) the post-2020 period. In the pre-2018 period, NOLs were eligible to be carried back two years and forward for 20 years. Any NOL carryforward or carryback could be used to offset 100 percent of the income generated in the carryback or forward period. NOLs generated in this period can continue to be utilized in the same manner