Question

Tim, a single taxpayer, operates a business as a single-member LLC. In 2019, his LLC reports...

Tim, a single taxpayer, operates a business as a single-member LLC. In 2019, his LLC reports business income of $449,500 and business deductions of $786,625, resulting in a loss of $337,125.

What are the implications of this business loss?

a. Tim has an excess business loss of $.

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 $ of the $337,125 LLC business loss, to offset nonbusiness income . The excess business loss is treated as part of Tim's NOL carryforward .

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