Exercise $7-28($Algorithmic$)($LO$.6)$

Tim, a single taxpayer, operates a business as a single$-$member LLC$.$ In $2023,$ his LLC reports business income of $$453,000$ and business deductions of $$792,750,$ resulting in a loss of $$339,750.$

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 $$339,750$ LLC business loss, to offset

other business incomenonbusiness incomenonbusiness income

$.$ The excess business loss is

forfeitedcarried back, then forwardtreated as part of Tim's NOL carryforwardtreated as part of Tim's NOL carryforward