Problem $7-40($LO$.6)$

During $2024,$ Leisel, a single taxpayer, operates a sole proprietorship in which she materially participates. Her proprietorship generates

gross income of $$148,000$ and deductions of $$470,000,$ resulting in a loss of $$322,000.$ The large deductions are due to the acquisition of

equipment and the use of immediate expense and additional first$-$year depreciation to deduct all of the acquisitions. Can Leisel use all of

this loss to offset other income she has?

She may use $$

of the $$322,000$ proprietorship business loss to offset nonbusiness income $.$ Leisel has an

excess business loss of $

$.$ The excess business loss is treated as part of her NOL carryforward $.$