PROBLEM 7

Eames, single, is self-employed (SE) and materially participates in the ED Partnership (PS). For 2018, Eames has a $500,000 loss from the SE business and $100,000 income from the PS. The income in the future is as follows:

2019: SE (70,000), PS 100,0002020: SE (20,000), PS 100,000 2021 SE 50,000, PS 100,000

Determine the Excessive business loss for 2018, and for each year the NOL carryforwards and income.