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Problem $7-41($LO$.6)$

Timothy Gates and Prada Singh decide to form a new company, TGPS LLC $($a multimember LLC that will report its operations as a partnership$).$ Timothy is married, and Prada is single. Each contributes $$400,000$ of capital to begin the business, and both materially participate in the business. In $2023,$ TGPS reports a net loss of $$610,000.$ What are the implications of this loss for Timothy and Prada?

If an amount is zero, enter $"0".$

Timothy has an excess business loss of $ $.$ He may use $$ of his share of the $$610,000$ LLC business loss to offset nonbusiness income $.$

Prada has an excess business loss of $ X$.$ She may use $$ X of her share of the $$610,000$ LLC business loss to offset nonbusiness income $.$

Any excess business loss is treated as part of the taxpayer's NOL carryforward $.$

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If a noncorporate taxpayer has an excess business loss for the year, it is not allowed.