Fuad, a head of household, has income and expenses from the following sources for 2019:

Net loss from his small business $9500

Wages form unrelated business 6000

Interest income 8000

Itemized deductions 8500

How much is Fuads net operating loss, if any, how is it treated?

1 $4,000, carried back 2 years, then forward

2 $3,500, carried forward only

3 $3,500, carried back 2 years, then forward

4 $9,500, carried back 2 years, then forward