This year, Sven opened a golf clinic structured as a sole proprietorship. For the six months the business was in operation, he recorded a net business loss of $37,500. During the winter months, Sven worked as a salaried employee at a health club. His income from the health club for this year was $19,300. Last year, Sven worked full-time at the health club and earned $44,000. What statement is true?