ichael D$.$ and Jeanette S$.$ Boyd live with their family at the Rock Glen House Bed & Breakfast, which Michael operates. The Bed & Breakfast $($B&B$)$ is located at $33333$ Fume Blanc Way, Temecula, CA $92591.$ Michael $($born May $4,1979)$ and Jeanette $($born June $12,1980)$ enjoy good health and eyesight.

$1.$ The Boyds have three sons. Maxwell was born April $16,2003,$ Seve was born December $2,2010,$ and Denzel was born January $13,2012.$ All three boys live at home, and the Boyds provide more than $50\%$ of their support.

$2.$ The Rock Glen House B&B is operated as a sole proprietorship and had the following income and expenses for the year:

Room rental income $$138,137$

Vending machine income $2,167$

Advertising expense $4,945$

Depreciation for book and tax purposes $18,000$

Mortgage interest on the B&B $22,900$

Wages of cleaning people $17,800$

Taxes and licenses $6,400$

Supplies consumed $19,185$

Business insurance $6,233$

Laundry expenses $4,200$

Accounting fees $1,800$

Office expenses $2,281$

Utilities $6,283$

All of the above amounts relate to the business portion of the Bed & Breakfast; the personal portion is accounted for separately. The Rock Glen House B&B uses the cash method of accounting and has no inventory. The employer tax ID number is $95-1234567.$

$3.$ The Boyds made estimated state income tax payments of $$3,000($all made during $2022).$

$4.$ Jeanette worked about $1,000$ hours as a substitute schoolteacher with the local school district. She also spent $$306$ out$-$of$-$pocket for various supplies for her classroom. For the current year, Jeanette's Form W$-2$ from the school district is located on a separate tab.

$5.$ Michael is retired from the U$.$S$.$ Navy. His annual statement from the Navy, Form $1099-$R$.$

$6.$ Michael and Jeanette paid $($and can substantiate$)$ the following amounts during the year:

Mastercard interest $$1,480$

Dental expenses $($orthodontics for Maxwell$)5,400$

California state income tax $($for $2021)2,100$

Charitable contributions $900$

Life insurance premiums $845$

Automobile registration fees $($deductible portion$)50$

Tax return preparation fee $475$

Contributions to the president's re$-$election campaign $1,000$

The Boyds are taking the standard deduction in $2022.$

$7.$ During the year, Michael and Jeanette received the following qualifying dividends and interest:

Interest:

Bob's Big Bank $$411$

Bank of California $289$

City of Temecula Tax$-$Exempt Bonds $1,500$

Vintage Bank See $1099-$INT

Qualified dividends:

Southwest Airlines $$312$

Heinz Foods $579$

Also, Jeanette owns Series EE U$.$S$.$ savings bonds. During the year, the bond redemption value increased by $$1,300.$ Jeanette has not elected the accrual method for these bonds. All the above stocks, bonds, and bank accounts are community property.

$8.$ Jeanette has a stock portfolio. During the year, she sold stock, for which she received $1099-$B Forms, as follows $($basis was provided to the IRS in all cases$)$:

Orange Co$.$ Gold Co$.$ Green Co$.$

Sales price $$8,000$ See Form $$1,555$

Basis $3,6001099-$B $2,417$

Date acquired $02/11/2210/31/20$

Date sold $06/19/2210/23/22$

$9.$ Michael does all the significant work in the Bed & Breakfast, and therefore, he pays self$-$employment tax on $100$ percent of the earnings from the B&B$.$

$10.$ During the year, Michael$$s Uncle Boris died. Boris had a $$50,000$ life insurance policy that named Michael as the beneficiary. Michael received the check for the benefits payable under the policy on November $30$ of the current year. Boris also left Michael a parcel of land with an appraised value of $$120,000.$

$11.$ Michael is a general partner in a partnership that owns a boutique hotel in northern California and leases the property to a hotel management company. Michael does not materially participate in the partnership activity but the partnership activity does rise to the level of a trade or business. See Schedule K$-1$ from the partnership.

$13.$ Jeanette was not eligible for health care benefits due to the part$-$time nature of her job, thus health insurance for the Boyd household was purchased through the Covered California program and the Boyds received the Form $1095-$A$.$ They had no other health insurance during $2022.$ Assume that the self$-$employed health insurance deduction is $$0.$ The Boyds were not paid an advance premium tax credit. Click here to access the completed Form $1095-$A to use when completing Form $8962.$

Required:

Michael and Jeanette have come to you to prepare their $2022$ federal income tax return. You are not required to complete the state income tax return. Do not file a federal Form $4952.$

Click here to access the tax table for this problem.

The taxpayers do not want to make a contribution to the presidential election campaign.

Enter all amounts as positive numbers, except for a "loss." If required, enter a "loss" as a negative number on the tax form.

If an amount box does not require an entry or the answer is zero, enter $"0".$

If required, round your answers to the nearest dollar. On Schedule SE$,$ use the rounded amou