Gerome started a dog grooming business in 2019. In his first year of operations, he made a profit of $20,000. For tax year 2020, he was able to generate a profit of $25,000. In 2021, things are slow and he made some new equipment purchases that he will be able to take depreciation on, resulting in a loss of $40,000. Which of the following statements is true:

Group of answer choices

Gerome cannot take any of the loss.

Gerome can take $3,000 per year of the loss until it is used up.

Gerome can carry-back the loss 2 years and forward 20 years.

Gerome is required to carry the loss forward indefinitely.