Gordon Temper is a single taxpayer (birthdate July 1, 1985, and Social Security number 242-11-6767) who operates a food truck that specializes in food from South Africa. His business is named "Mobile Peri Peri" and although the truck moves around quite a bit, he generally parks it in an office park where he maintains an office and a supply of inventory. The business address is 150 Erie Street, Laramie, WY 82070. The principal business code is 722300.

Gordon's food truck business is fairly new, so he also works part-time as a cook at a steak house restaurant in Laramie. His 2022 Form W-2 follows (see separate tab).

Gordon provided the following financial information related to Mobile Peri Peri:

Revenues	$78,000
Beginning Inventory	5,600
Purchases	43,000
Ending inventory	7,800
Truck rental	24,000
Office rental	8,600
Advertising	500
Insurance	3,000
Food license	450
Uniforms	200
Dues	100
Travel	1,600
Office expense	400

Mobile Peri Peri uses the cash method of accounting and the cost method for inventory.

 

Gordon also provided a transportation log that shows that the truck drove 2,600 business miles between January 1 and June 30 and 3,000 miles from July 1 through the end of 2022. Gordon's log also listed total mileage of 680 miles for his drive in his personal car from the Mobile Peri Peri office to his second job at the steak house. He did not provide mileage from his apartment to or from either work location.

Dues are for a subscription to Food Truck Monthly, a trade magazine.

His travel expense of $1,600 is for a trip to Steamboat Springs, CO, for a one-day seminar on South African cuisine. He spent the day at the seminar and then went snowskiing for two days before returning to Laramie. His airfare to Steamboat Springs was $400, his lodging was $300 per night for three nights, and his meals were all restaurant meals at a cost of $100 per day. The uniforms are white chef's coats and puffy chef's hats embroidered with the South African flag and the Mobile Peri Peri logo on front and back.

Gordon was divorced in 2017. His ex-spouse, Tanya Ramsey, pays him alimony of $300 per month. She also has custody of their five children. One of the Ramsey's children, Buffy, age 17, lived with Gordon for five months during 2022 and he estimates he provided more than one-half of her support. Buffy has a part-time job at Taco Shell fast-food restaurant and made $5,000 in 2022.

Gordon received a sizable property settlement as part of the divorce and has invested wisely. He received the following Forms 1099 for 2022 (see separate tab).

Required: 
Complete Gordon's federal income tax return for 2022 on Form 1040, Schedule 1, Schedule B, Schedule C, and the Qualified Dividends and Capital Gains Tax Worksheet.

A statement is required to be attached to a return for a nonbusiness bad debt, but this requirement may be ignored for this problem. You may ignore any related self-employment taxes. Assume no 1099-B is filed in association with the bad debt when filling out Form 8949.

• You may need to complete the other forms before completing the Form 1040.
• If an amount box does not require an entry or the answer is zero, enter "0".
• If required, round amounts to the nearest dollar.
• Enter all amounts as positive numbers. However, if required, use the minus sign to enter a "loss".