Tim, a single taxpayer, operates a business as a single$-$member LLC$.$ In $2023,$ his LLC reports business income of $$367,500$ and business deductions of $$643,125,$ resulting in a loss of $$275,625.$

What are the implications of this business loss?

a$.$ Tim has an excess business loss of $fill in the blank $1$

$44,000$

$.$

b$.$ Can this business loss be used to offset other income that Tim reports? If so$,$ how much? If not, what happens to the loss?

Tim may use $fill in the blank $2$

$289,000$

of the $$333,000$ LLC business loss, to offset

nonbusiness income

$.$ The excess business loss is

treated as part of Tim's NOL carryforward

$.$