ee and Mary are married and file a joint return. During the year, Lee operated a sole proprietorship that generated income of $200,000 and had deductible expenses of $875,000. What amount of he loss can be deducted (used to offset nonbusiness income), and what amount of the loss is considered an excess business loss that must be included in their net operating loss (NOL) :arryforward? $250,000 (current year deduction); $425,000 (excess business loss) $500,000 (current year deduction); $175,000 (excess business loss) $425,000 (current year deduction); $250,000 (excess business loss) $175,000 (current year deduction); $500,000 (excess business loss)