Tim, a single taxpayer, operates a business as a single-member LLC. In 2020, his LLC reports business income of $416,500 and business deductions of $728,875, resulting in a loss of $312,375. What are the implications of this business loss?

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

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 of the $312,375 LLC business loss, to offset nonbusiness income. The excess business loss is treated as part of Tim's NOL carryforward.