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Tyler, a single taxpayer, generates business income of $3,000 in 2016. In 2017, he generates an NOL of $2,000. In 2018, he incurs another NOL of $5,000. In 2019 , he generates a modest business income of $6,000 and then in 2020 , the COVID-19 pandemic results in an NOL of $13,000. In 2021 , Tyler's business generates income of $13,000. Assume that in all years, Tyler adopts the NOL treatment that results in the earliest and greatest refund. Provide a chronological analysis of Tyler's treatment of NOLs through 2021 and report any NOL carryforward into 2022. In 2017, Tyler his $2,000NOL against his income leaving q of 2016 income. In 2018, Tyler the NOL to In 2019, Tyler can offset of his 2019 income with the NOL and he has a $ carryforward from In 2020, the COVID-19 provisions allows him to carryback $ against the 2019 income and then can use another $ V of 2020 NOL against the remaining 2019 income. The remaining from 2020 may be carried forward into 2021. After 2020 , NOLs are subject to the 80% income limitation. Tyler will be able to use and have a 5 X NOL to carryforward into 2022. Feedback T Check My Work The net operating loss provision is primarily designed to provide relief for trade or business losses. Generally, only losses from the operation of a trade or business, casualty and theft losses, or confiscation losses can generate a net operating loss. The rules related to NOLs have changed three times in recent years and with each change, NOLs are treated slightly differently. The three periods are: (1) the Pre-2018 period, (2) the 2018-2020 period (due to COVID-19 provisions), and (3) the post-2020 period. In the pre-2018 period, NOLs were eligible to be carried back two years and forward for 20 years. Any NOL carryforward or carryback could be used to offset 100 percent

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