Michael 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, 1977) and Jeanette (born June 12, 1978) enjoy good health and eyesight.

1. The Boyds have three sons. Maxwell was born April 16, 2003, Seve was born December 2, 2008, and Denzel was born January 13, 2010. 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	$137,900
Vending machine income	2,000
Advertising expense	4,800
Depreciation for book and tax purposes	18,000
Mortgage interest on the B&B	23,000
Wages of cleaning people	17,540
Taxes and licenses	6,420
Supplies consumed	19,000
Business insurance	6,300
Laundry expenses	4,300
Accounting fees	1,800
Office expenses	2,400
Utilities	6,300

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. Michael contracted the coronavirus in 2020 and the bed and breakfast was forced to close for 24 days. Shortly after recovering, Michael was required to close the bed and breakfast for another 15 days while he cared for his son Denzel, who was unable to attend school. Michael elects to take any sick and family leave credits associated with this leave, but does not defer his self-employment tax payments.

3. The Boyds made estimated federal income tax payments of $2,000 and estimated state income tax payments of $6,000 (all made during 2020).

4. Jeanette worked about 1,000 hours as a substitute schoolteacher with the local school district. She also spent $246 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)	5,457
California state income tax (for 2019)	2,130
Charitable contributions	875
Life insurance premiums	845
Automobile registration fees (deductible portion)	45
Tax return preparation fee	475
Contributions to the president's re-election campaign	1,000

The Boyds are taking the standard deduction in 2020.

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

Interest:
Bob's Big Bank	$390
Bank of England	290
City of Temecula Tax-Exempt Bonds	1,500
Vintage Bank	See 1099-INT
Qualified dividends:
Southwest Airlines	$250
Heinz Foods	550

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. There were no British taxes paid on the interest from the Bank of England. 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	$8,100		See Form	$1,500
Basis	3,775		1099-B	2,600
Date acquired	02/11/20			10/31/18
Date sold	06/19/20			10/23/20

9. Jeanette paid her ex-husband $4,600 alimony in the current year, as required under the 2003 divorce decree. Her ex-husband's name is Hector Leach and his Social Security number is 566-23-5431.

10. 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.

11. 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.

12. 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.

What go on line 7 Net earning from self employment Form 7202? I filled amount of line 6 Schedule SE into line 7 Form 7202 but it is wrong.

What go on line 1 Form 8995 which is Wine Acres Partners Qualified business income or (loss) ?

This is information of Schedule K-1 ( Form 1065)

Part I : Partnership's name : Wine Acres Partners

Part II: partner : Michael Boyd

Net rental real estate income(loss): $1,600

Ordinary dividends : $10

Qualified dividends :$10

Net long-term capital gain (loss): ($890)

Distributions: $350

Self- employment earnings (loss): $,1600

Beginning Capital account $13,256

Current year net income (loss): $720

Withdrawals & distributions ($350)

Ending Capital account : $13,626