Net Operating Losses (LO 4.9) Tyler, a single taxpayer, generates business income of $3,000 in 2016 to 2017, he generates an NOL of $2,000. In 2008, he incurs another NOL of $5,000. In 2018, he generates a modest business income of $6,000 and then in 2020, the COVID 19 pandemic results in an NCL of $13,000. In 2021, Tyler's business generates income of $13,000. Assume that in all years, Tyler adopts the NOL treatment that results in the earliest and greatest refund. Provide a chronological analysis of Tyler's treatment of NOLS through 2021 and report any NCL carryforward into 2022. In 2017, Tyler carries back In 2018, Tyler carries forward his $2,000 NOL against No 2916 income leaving t 1,000 of 2016 income the NOL to 2019 In 2019, Tyler can office 0% of his 2019 income with the 2018 NOL and he has a t 10,400 X carryforward from 2018 In 2020, the COVID-19 provisions allows him to carryback t against the remaining 2019 income. The remaining t NOL to carryforward into 2023 1,000 to 2016 He can now use all of the remaining s 2018 NOL from 2020 may be carried forward into 2021 Aher 2020, NOLs are subject to the at the 2019 income and then can use another i % income mitation Tyler v LA002020 NOL in 2021 and have s The net operating loss provision is primarily designed to provide relief for trade or business losses General, only losses on the operation of a trade or business, casualty and theft losses, or confiscation 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-29 provi and (3) the post-2020 period. In the pre-2019 period, NOLS were sligible to be carried back two years and forward for 20 years. Amy NOL camryforant or carryback could be used to offset 100 percent of the income generated carryback or forward period. NOLS generated in this period can continue to be used in the same ma