Tim, a single taxpayer, operates a business as a single-member LLC. In 2023, his LLC reports business income of $421,500 and business deductions of $737,625, resulting in a loss of $316,125.

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 $fill in the blank 2 of the $316,125 LLC business loss, to offset

other business income OR nonbusiness income

. The excess business loss is

forfeited OR carried back, then forward OR treated as part of Tim's NOL carryforward

.