Tim, a single taxpayer, operates a business as a single-member LLC. In 2021, his LLC reports business income of $356,500 and business deductions of $623,875, resulting in a loss of $267,375.

What are the implications of this business loss?

a. Tim has an excess business loss of $_________.

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 $_______of the $267,375 LLC business loss, to offset ___________(other business income or nonbusiness income).The excess business loss is __________.(treated as part of Tim's NOL carryforward or carried back then forward or forfeited)