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Skylar and Walter Black have been married for 2 5 years. They live at 8 8 3 Scrub Brush Street, Unit 5 2 B ,

Skylar and Walter Black have been married for 25 years. They live at 883 Scrub Brush Street, Unit 52B, Las Vegas, NV 89125. Skylar is self-employed and Walt is a high school teacher. Skylars Social Security number is 222-43-7690 and Walts is 700-01-0002. Walters birthdate is January 21,1967, and Skylars is February 14,1980. The Blacks provide all the support for Skylars mother, Rebecca Backin (Social Security number 411-66-2121), who lives in a nursing home in Reno, NV, and has no income.
Walters father, Alton Black (Social Security number 343-22-8899), lives with the Blacks in Las Vegas. Although Alton received Social Security benefits of $7,600 in 2022, the Blacks provide more than half of Altons support. If Rebecca or Alton qualify as dependents, Skylar and Walt can claim a $500 other dependent credit for each.
Walts earnings from teaching are:
A W-2 form shows details of Walter Blacks earnings and income tax withholdings for 2022. The form is divided into two Panels. The O M B number is 1545-0008. The first panel contains a to f sections. It shows filled-in fields for the following: a. employees social security number: 700-01-0002(highlighted), b. employer identification number (E I N): 31-1239867, c. employers name, address, and ZIP code: information about Las Vegas School District, e. employees first name, initial, and last name, and f. employees address and ZIP code. To be filled-in field in this panel is d. control number. The second panel contains 1 to 20 sections. It shows filled-in fields for 1. Wages, tips, other compensation: 55000.00(highlighted),2. Federal income tax withheld: 3800.00(highlighted),3. Social security wages: 55000.00,4. Social security tax withheld: 3410,5. Medicare wages and tips: 55000.00,6. Medicare tax withheld: 797.50,12a. See instructions for box 12: D D,7,900.00,13. Retirement plan checked, and 15. State: N V, employees state I D number. To be filled-in fields for this panel are: 7. Social security tips, 8. Allocated tips, 9,10. Dependent care benefits, 11. Nonqualified plans, 12 b,12 c,12 d,14. Other, 16. State wages, tips, etc., 15. State income tax, 18. Local wages, tips, etc., 19. Local income tax, and 20. Locality name. A footnote below the form reads, Form W-2 Wage and Tax Statement Copy B-To Be Filed With Employees FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service. 2022. Department of the Treasury-Internal Revenue Service.
The Blacks moved from Maine to Nevada. As a result, they sold their house in Maine on January 4,2022. They originally paid $80,000 for the home on July 3,1996, but managed to sell it for $598,000. They spent $14,000 on improvements over the years.
The Blacks own a ski condo located at 123 Buncombe Lane, Brian Head, UT 84719. The condo was rented for 189 days during 2022 and used by the Blacks for 21 days. The rental activity does not rise to the level to qualify for the QBI deduction. Pertinent information about the condo rental is as follows:
Rental income
$25,000
Mortgage interest reported on Form 1098
12,000
Homeowners association dues
4,200
Utilities
4,400
Maintenance
6,600
Depreciation (assume fully depreciated)
0
The above amounts do not reflect any allocation between rental and personal use of the condo. The Blacks are active managers of the condo.
Skylar runs a small car wash in Las Vegas as a sole proprietor. The business name is A1A Car Wash and is located at 4900 Cutler Ave NE, Las Vegas, NV 89146. The employer identification number is 19-3451234. She uses the cash method of accounting and does not track inventory of the sundries she sells (air fresheners, etc.). She therefore does not have beginning or ending inventories and recognizes the cost as supplies expense. The business code for a car wash is 811192. Her financial results for 2022 were as follows:
The business office at the car wash is not conducive to any type of work. It is basically a glorified broom closet. As a result, Skylar has a home office in their primary residence (which they rent). The office is 200 square feet in their 2,000 square foot home. They pay rent of $16,000 per year and their 2022 utilities are $1,200.
In 2018, Walter loaned his friend, Hank Shorter $5,000. In 2022, Hank declared bankruptcy and Walter is certain he will never get paid.
Walt is attending the Las Vegas Polytechnical University, pursuing a masters degree in chemistry. His employer has an education assistance program that paid Walt $5,250 in 2022. His total 2022 tuition was $10,000. The remaining tuition was paid for through the Los Gatos Hermanos Foundation scholarship for adult learners.
Walter has been experimenting with a new candy formula in his garage chemistry lab. He has been working on a new blueberry flavor that tastes more like real blueberries. For the past few years, he has spent between $1,000 and $2,000 per year on this venture but has

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