Skylar and Walter Black have been married for 25 years. They live at 883 Scrub Brush Street, Apt. 52B, Las Vegas, NV 89125. Skylar is a stay-at-home parent and Walt is a high school teacher. Skylars Social Security number is 222-43-7690 and Walts is 700-01-0002. Neither are age 65 or older. 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 2019, the Blacks provide over half of Al-tons support. Skylar and Walt claim a $500 other dependent credit each for Rebecca and Alton. Walts earnings from teaching are:

The Blacks moved from Maine to Nevada. As a result, they sold their house in Maine on January 4, 2019. They originally paid $76,000 for the home on July 3, 1994, but managed to sell it for $604,000. They spent $13,000 on improvements over the years. They are currently renting in Las Vegas while they look for a new home.

The Blacks own a ski condo located at 123 Buncombe Lane, Brian Head, UT 84719. The condo was rented for 185 days during 2019 and used by the Blacks for 15 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	$12,100
Mortgage interest reported on Form 1098	8,600
Homeowners association dues	5,200
Utilities	1,200
Maintenance	3,800
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.

Required: Complete the Blacks federal tax return for 2019. Use Form 1040, Schedule 1, Schedule D, Form 8949, Schedule E (page one only), Form 8582 (page one only) and the Qualified Dividends and Capital Gain Tax Worksheet to complete their tax return.

and Alton. Walt's earnings from teaching are: Choosocia U mber Sote BOOT 700-01-0002 OMB NO. 154 COCO we file b oylcenticationbar IN We aroc 51.200.00 4.310.00 31-1239867 CONTACT Las Vegas School District 2234 Vegas Valley Drive Las Vegas, NV 89169 51,200.00 MOC Wages and sps 51,200.00 3,174.40 742.40 Alonso DD$7.900.00 Walter Black 883 Scrub Brush Street, Apt 52B Las Vegas, NV 89125 NV V W Wasce and Tax Statement Copy-To Be Fed with Employee's FEDERAL Tax Return 2019 The Blacks received the following 1099-DIV from their mutual fund investments: GMK NO 1545 011 2019 Dividends and Distributions CORRECTED i checked) PAYERS s o r o r province, Country. Pta Total ordinary duide 1.425.00 Cyber Funds Equities Fund 41 Wall Street New York, NY 10005 1.002.00 $ 6.540.34 POMENTS TN 17-1234326 222-43-7690 Form 1099-Dry Copy B For Rocipient IS Skylar B. Black ol III 3151 10 883 Scrub Brush Street #52B Las Vegas, NV 89125 Las Vegas, NV 89125 ou seconds HII 1 For 1099-DIV Deep for your records Df8582.pdf x f 8949.pdf - X 5 + | 1 5 f1040s1 (1).pdf o n of 3 lo f1040 (2).pdf f1040sse.pdf file:///C:/Users/betha/Downloads/f8582.pdf - + Fit to page ID Page view AV Read aloud Add notes H F OMB No. 1545-1008 Form 8582 Passive Activity Loss Limitations See separate instructions. Attach to Form 1040, Form 1040-SR, or Form 1041. Go to www.irs.gov/Form8582 for instructions and the latest information. 2019 Department of the Treasury Internal Revenue Service (99) Name(s) shown on return Attachment Sequence No. 88 Identifying number Part I 2019 Passive Activity Loss Caution: Complete Worksheets 1, 2, and 3 before completing Part I. Rental Real Estate Activities With Active Participation (For the definition of active participation, see Special Allowance for Rental Real Estate Activities in the instructions.) 1a Activities with net income (enter the amount from Worksheet 1, column (a)). 1a b Activities with net loss (enter the amount from Worksheet 1, column (b)). 1b c Prior years' unallowed losses (enter the amount from Worksheet 1, column (c)) 1c d Combine lines 1a, 1b, and 1c... Commercial Revitalization Deductions From Rental Real Estate Activities 2a Commercial revitalization deductions from Worksheet 2 column (a) ... 2a b Prior year unallowed commercial revitalization deductions from Worksheet 2, column (b) . . . . . . . . . . . . . . . . . . . . . . 25C C Add lines 2a and 2b . . ... 2c All Other Passive Activities 3a Activities with net income (enter the amount from Worksheet 3, column (a)). 3a b Activities with net loss (enter the amount from Worksheet 3, column (b)). 3b C Prior years' unallowed losses (enter the amount from Worksheet 3, column (c)) 30 ) d Combine lines 3a, 3b, and 3c Combine lines 1d, 2c, and 3d. If this line is zero or more, stop here and include this form with your return; all losses are allowed, including any prior year unallowed losses entered on line 1c, 2b, or 3c. Report the losses on the forms and schedules normally used . . . . . . . 14 If line 4 is a loss and: Line 1d is a loss, go to Part II. Line 2c is a loss (and line 1d is zero or more), skip Part II and go to Part III. Line 3d is a loss (and lines 1d and 2c are zero or more), skip Parts II and Ill and go to line 15 Caution: If your filing status is married filing separately and you lived with your spouse at any time during the year, do not complete Part II or Part III. Instead, go to line 15. Part II Special Allowance for Rental Real Estate Activities With Active Participation Note: Enter all numbers in Part Il as positive amounts. See instructions for an example. 5 Enter the smaller of the loss on line 1d or the loss on line 4 ..., 6 Enter $150,000. If married filing separately, see instructions ..... 7 Enter modified adjusted gross income, but not less than zero. See instructions . . 3d 16 17 Type here to search 8 9 e w ^ (1) 14/2020 6 5 f 8582.pdf x Bf8949.pdf - tv -ox f104051 (1).pdf 0 Bf1040 (2).pdf f1040sse.pdf file:///C:/Users/betha/Downloads/f8582.pdf 1 of 3 lo H F - + Fit to page ID Page view AV Read aloud Add notes ITU IU luas urru - In Tula U US, yurul II. Line 2c is a loss and line 1d is zero or more), skip Part II and go to Part III. Line 3d is a loss (and lines 1d and 2c are zero or more), skip Parts II and Ill and go to line 15 Caution: If your filing status is married filing separately and you lived with your spouse at any time during the year, do not complete Part II or Part III. Instead, go to line 15. Part II Special Allowance for Rental Real Estate Activities With Active Participation Note: Enter all numbers in Part Il as positive amounts. See instructions for an example. 5 Enter the smaller of the loss on line 1d or the loss on line 4 ...... ........ | 5 | 6 Enter $150,000. If married filing separately, see instructions ...... 6 | 7. Enter modified adjusted gross income, but not less than zero. See instructions | 7 | Note: If line 7 is greater than or equal to line 6, skip lines 8 and 9, enter -- on line 10. Otherwise, go to line 8. 8 Subtract line 7 from line 6 , 9 Multiply line 8 by 50% (0.50). Do not enter more than $25,000. If married filing separately, see instructions 9 10 Enter the smaller of line 5 or line 9 . . 10 If line 2c is a loss, go to Part III. Otherwise, go to line 15. Part III Special Allowance for Commercial Revitalization Deductions From Rental Real Estate Activities Note: Enter all numbers in Part Ill as positive amounts. See the example for Part II in the instructions. 11 Enter $25,000 reduced by the amount, if any, on line 10. If married filing separately, see instructions. | 11 | 12 Enter the loss from line 4. . . . . . . . . . . . . . . . . . . . . . . . . 12 | 12 13 Reduce line 12 by the amount on line 10 . . . 13 14 Enter the smallest of line 2c (treated as a positive amount), line 11, or line 13 . . . . . . . . 14 Part IV Total Losses Allowed 15 Add the income, if any, on lines 1a and 3a and enter the total . 15 16 Total losses allowed from all passive activities for 2019. Add lines 10, 14, and 15. See instructions to find out how to report the losses on your tax return . . . . . . . . . . . . . . . . 16 For Paperwork Reduction Act Notice, see instructions. Cat. No. 63704F Form 8582 (2019) Type here to search o di a 9 2 w ^ (a 4 23.07.2020 5 Bf8949.pdf f8949.pdf + V - O X 6 + | 2 f1040S1 (1).pdf o n of 3 lo f1040 (2).pdf odf f1040sse.pdf f1040sse.pdf f 8582.pdf f8582.pdf x file:///C:/Users/betha/Downloads/f8582.pdf - + Fit to page CD Page view | A Read aloud L Add notes 6 E * Page 2 Form 8582 (2019) Caution: The worksheets must be filed with your tax return. Keep a copy for your records. Worksheet 1-For Form 8582, Lines 1a, 1b, and 1c (see instructions) Current year Prior years Name of activity (a) Net income (b) Net loss | (c) Unallowed (line 1a) (line 1b) loss (line 10) Overall gain or loss (d) Gain (e) Loss Total. Enter on Form 8582, lines 1a, 1b, and 1C . . . . . . . . . Worksheet 2-For Form 8582, Lines 2a and 2b (see instructions) Name of activity (a) Current year (b) Prior year deductions (line 2a) junallowed deductions (line 21l (c) Overall loss Total. Enter on Form 8582, lines 2a and 2b . . . Worksheet 3-For Form 8582, Lines 3a, 3b, and 3C (see instructions) Current year Prior years Overall gain or loss Name of activity (a) Net income (line 3a) (b) Net loss (line 3b) (c) Unallowed loss (line 30) (d) Gain (e) Loss Total. Enter on Form 8582, lines 3a, 3b, and 3c . . . . . . Worksheet 4-Use This Worksheet if an Amount Is Shown on Form 8582, Line 10 or 14. See instructions. Form or schedule and line number Type here to search (c) Special (d) Subtract 6:00 PM o R e o e w ^ o ra 1 219/2020 f8582.pdf x B 18949.pdf + v - x a f104051 (1).pdf o n of 3 lo f1040 (2).pdf f1040sse.pdf file:///C:/Users/betha/Downloads/f8582.pdf + | 2 - + O Fit to page D Page view A Read aloud L Add notes 6 F 6 Total. Enter on Form 8582, lines 3a, 3b, and 3C . . . . . . . . . . . Worksheet 4-Use This Worksheet if an Amount Is Shown on Form 8582, Line 10 or 14. See instructions. Form or schedule 1 (d) Subtract and line number Name of activity (a) Loss (c) Special to be reported on (b) Ratio column (c) from allowance (see instructions) column(a) civity are in tore n (a) Loss Total . . . . . . . . . . . . . . . . . - Worksheet 5-Allocation of Unallowed Losses (see instructions) Form or schedule Name of activity and line number to be reported on (a) Loss (see instructions) (b) Ratio (c) Unallowed loss Total . . . . . . . . . . ..... . . . 1.00 Form 8582 (2019) Type here to search o di a 9 2 w ^ (a 4 29/2020 f8949.pdf + v - o 6 + | 3 = 1104051 (1).pdf o n of 3 lo Bf1040 (2).pdf f10405se.pdf f8582.pdf x file:///C:/Users/betha/Downloads/f8582.pdf - + Fit to page ID Page view | A Read aloud L Add notes 6 5 6 Page 3 Form 8582 (2019) Worksheet 6-Allowed Losses (see instructions) Form or schedule and line number Name of activity to be reported on (see instructions) (a) Loss (b) Unallowed loss (c) Allowed loss Total . . . . . . . . . . . . . . . . . . Worksheet 7-Activities With Losses Reported on Two or More Forms or Schedules (see instructions) Name of activity: (b) (c) Ratio (d) Unallowedle) Allowed loss loss Form or schedule and line number to be reported on (see instructions): 1a Net loss plus prior year unallowed loss from form or schedule b Net income from form or schedule . . . . . . . T c Subtract line 1b from line 1a. If zero or less, enter-O- Form or schedule and line number to be reported on (see instructions): 1a Net loss plus prior year unallowed loss from form or schedule b Net income from form or schedule . . . . . . . T c Subtract line 1b from line 1a. If zero or less, enter-O- Form or schedule and line number to be reported on (see instructions): 1a Net loss plus prior year unallowed 6:02 PM Type here to search ORI - e w ^ a la 1 2912/2020 f8582.pdf x Bf8949.pdf o a f104051 (1).pdf o n of 3 lo Bf1040 (2).pdf Bf1040sse.pdf file:///C:/Users/betha/Downloads/f8582.pdf + v - h * ... + | 3 = - + Fit to page ID Page view AV Read aloud Add notes H F voncur . . C Subtract line 1b from line 1a. If zero or less, enter-O- Form or schedule and line number to be reported on (see instructions): 1a Net loss plus prior year unallowed loss from form or schedule. b Net income from form or schedule . . . . . . . c Subtract line 1b from line 1a. If zero or less, enter-O- Form or schedule and line number to be reported on (see instructions): 1a Net loss plus prior year unallowed loss from form or schedule. Net income from form or schedule . . . . . . . b C Subtract line 1b from line 1a. If zero or less, enter - - Total . . . . . . . . . . . . . . . . . . 1.00 Form 8582 (2019) Type here to search 9 w 4 4 (4) 5:03 PM and Alton. Walt's earnings from teaching are: Choosocia U mber Sote BOOT 700-01-0002 OMB NO. 154 COCO we file b oylcenticationbar IN We aroc 51.200.00 4.310.00 31-1239867 CONTACT Las Vegas School District 2234 Vegas Valley Drive Las Vegas, NV 89169 51,200.00 MOC Wages and sps 51,200.00 3,174.40 742.40 Alonso DD$7.900.00 Walter Black 883 Scrub Brush Street, Apt 52B Las Vegas, NV 89125 NV V W Wasce and Tax Statement Copy-To Be Fed with Employee's FEDERAL Tax Return 2019 The Blacks received the following 1099-DIV from their mutual fund investments: GMK NO 1545 011 2019 Dividends and Distributions CORRECTED i checked) PAYERS s o r o r province, Country. Pta Total ordinary duide 1.425.00 Cyber Funds Equities Fund 41 Wall Street New York, NY 10005 1.002.00 $ 6.540.34 POMENTS TN 17-1234326 222-43-7690 Form 1099-Dry Copy B For Rocipient IS Skylar B. Black ol III 3151 10 883 Scrub Brush Street #52B Las Vegas, NV 89125 Las Vegas, NV 89125 ou seconds HII 1 For 1099-DIV Deep for your records Df8582.pdf x f 8949.pdf - X 5 + | 1 5 f1040s1 (1).pdf o n of 3 lo f1040 (2).pdf f1040sse.pdf file:///C:/Users/betha/Downloads/f8582.pdf - + Fit to page ID Page view AV Read aloud Add notes H F OMB No. 1545-1008 Form 8582 Passive Activity Loss Limitations See separate instructions. Attach to Form 1040, Form 1040-SR, or Form 1041. Go to www.irs.gov/Form8582 for instructions and the latest information. 2019 Department of the Treasury Internal Revenue Service (99) Name(s) shown on return Attachment Sequence No. 88 Identifying number Part I 2019 Passive Activity Loss Caution: Complete Worksheets 1, 2, and 3 before completing Part I. Rental Real Estate Activities With Active Participation (For the definition of active participation, see Special Allowance for Rental Real Estate Activities in the instructions.) 1a Activities with net income (enter the amount from Worksheet 1, column (a)). 1a b Activities with net loss (enter the amount from Worksheet 1, column (b)). 1b c Prior years' unallowed losses (enter the amount from Worksheet 1, column (c)) 1c d Combine lines 1a, 1b, and 1c... Commercial Revitalization Deductions From Rental Real Estate Activities 2a Commercial revitalization deductions from Worksheet 2 column (a) ... 2a b Prior year unallowed commercial revitalization deductions from Worksheet 2, column (b) . . . . . . . . . . . . . . . . . . . . . . 25C C Add lines 2a and 2b . . ... 2c All Other Passive Activities 3a Activities with net income (enter the amount from Worksheet 3, column (a)). 3a b Activities with net loss (enter the amount from Worksheet 3, column (b)). 3b C Prior years' unallowed losses (enter the amount from Worksheet 3, column (c)) 30 ) d Combine lines 3a, 3b, and 3c Combine lines 1d, 2c, and 3d. If this line is zero or more, stop here and include this form with your return; all losses are allowed, including any prior year unallowed losses entered on line 1c, 2b, or 3c. Report the losses on the forms and schedules normally used . . . . . . . 14 If line 4 is a loss and: Line 1d is a loss, go to Part II. Line 2c is a loss (and line 1d is zero or more), skip Part II and go to Part III. Line 3d is a loss (and lines 1d and 2c are zero or more), skip Parts II and Ill and go to line 15 Caution: If your filing status is married filing separately and you lived with your spouse at any time during the year, do not complete Part II or Part III. Instead, go to line 15. Part II Special Allowance for Rental Real Estate Activities With Active Participation Note: Enter all numbers in Part Il as positive amounts. See instructions for an example. 5 Enter the smaller of the loss on line 1d or the loss on line 4 ..., 6 Enter $150,000. If married filing separately, see instructions ..... 7 Enter modified adjusted gross income, but not less than zero. See instructions . . 3d 16 17 Type here to search 8 9 e w ^ (1) 14/2020 6 5 f 8582.pdf x Bf8949.pdf - tv -ox f104051 (1).pdf 0 Bf1040 (2).pdf f1040sse.pdf file:///C:/Users/betha/Downloads/f8582.pdf 1 of 3 lo H F - + Fit to page ID Page view AV Read aloud Add notes ITU IU luas urru - In Tula U US, yurul II. Line 2c is a loss and line 1d is zero or more), skip Part II and go to Part III. Line 3d is a loss (and lines 1d and 2c are zero or more), skip Parts II and Ill and go to line 15 Caution: If your filing status is married filing separately and you lived with your spouse at any time during the year, do not complete Part II or Part III. Instead, go to line 15. Part II Special Allowance for Rental Real Estate Activities With Active Participation Note: Enter all numbers in Part Il as positive amounts. See instructions for an example. 5 Enter the smaller of the loss on line 1d or the loss on line 4 ...... ........ | 5 | 6 Enter $150,000. If married filing separately, see instructions ...... 6 | 7. Enter modified adjusted gross income, but not less than zero. See instructions | 7 | Note: If line 7 is greater than or equal to line 6, skip lines 8 and 9, enter -- on line 10. Otherwise, go to line 8. 8 Subtract line 7 from line 6 , 9 Multiply line 8 by 50% (0.50). Do not enter more than $25,000. If married filing separately, see instructions 9 10 Enter the smaller of line 5 or line 9 . . 10 If line 2c is a loss, go to Part III. Otherwise, go to line 15. Part III Special Allowance for Commercial Revitalization Deductions From Rental Real Estate Activities Note: Enter all numbers in Part Ill as positive amounts. See the example for Part II in the instructions. 11 Enter $25,000 reduced by the amount, if any, on line 10. If married filing separately, see instructions. | 11 | 12 Enter the loss from line 4. . . . . . . . . . . . . . . . . . . . . . . . . 12 | 12 13 Reduce line 12 by the amount on line 10 . . . 13 14 Enter the smallest of line 2c (treated as a positive amount), line 11, or line 13 . . . . . . . . 14 Part IV Total Losses Allowed 15 Add the income, if any, on lines 1a and 3a and enter the total . 15 16 Total losses allowed from all passive activities for 2019. Add lines 10, 14, and 15. See instructions to find out how to report the losses on your tax return . . . . . . . . . . . . . . . . 16 For Paperwork Reduction Act Notice, see instructions. Cat. No. 63704F Form 8582 (2019) Type here to search o di a 9 2 w ^ (a 4 23.07.2020 5 Bf8949.pdf f8949.pdf + V - O X 6 + | 2 f1040S1 (1).pdf o n of 3 lo f1040 (2).pdf odf f1040sse.pdf f1040sse.pdf f 8582.pdf f8582.pdf x file:///C:/Users/betha/Downloads/f8582.pdf - + Fit to page CD Page view | A Read aloud L Add notes 6 E * Page 2 Form 8582 (2019) Caution: The worksheets must be filed with your tax return. Keep a copy for your records. Worksheet 1-For Form 8582, Lines 1a, 1b, and 1c (see instructions) Current year Prior years Name of activity (a) Net income (b) Net loss | (c) Unallowed (line 1a) (line 1b) loss (line 10) Overall gain or loss (d) Gain (e) Loss Total. Enter on Form 8582, lines 1a, 1b, and 1C . . . . . . . . . Worksheet 2-For Form 8582, Lines 2a and 2b (see instructions) Name of activity (a) Current year (b) Prior year deductions (line 2a) junallowed deductions (line 21l (c) Overall loss Total. Enter on Form 8582, lines 2a and 2b . . . Worksheet 3-For Form 8582, Lines 3a, 3b, and 3C (see instructions) Current year Prior years Overall gain or loss Name of activity (a) Net income (line 3a) (b) Net loss (line 3b) (c) Unallowed loss (line 30) (d) Gain (e) Loss Total. Enter on Form 8582, lines 3a, 3b, and 3c . . . . . . Worksheet 4-Use This Worksheet if an Amount Is Shown on Form 8582, Line 10 or 14. See instructions. Form or schedule and line number Type here to search (c) Special (d) Subtract 6:00 PM o R e o e w ^ o ra 1 219/2020 f8582.pdf x B 18949.pdf + v - x a f104051 (1).pdf o n of 3 lo f1040 (2).pdf f1040sse.pdf file:///C:/Users/betha/Downloads/f8582.pdf + | 2 - + O Fit to page D Page view A Read aloud L Add notes 6 F 6 Total. Enter on Form 8582, lines 3a, 3b, and 3C . . . . . . . . . . . Worksheet 4-Use This Worksheet if an Amount Is Shown on Form 8582, Line 10 or 14. See instructions. Form or schedule 1 (d) Subtract and line number Name of activity (a) Loss (c) Special to be reported on (b) Ratio column (c) from allowance (see instructions) column(a) civity are in tore n (a) Loss Total . . . . . . . . . . . . . . . . . - Worksheet 5-Allocation of Unallowed Losses (see instructions) Form or schedule Name of activity and line number to be reported on (a) Loss (see instructions) (b) Ratio (c) Unallowed loss Total . . . . . . . . . . ..... . . . 1.00 Form 8582 (2019) Type here to search o di a 9 2 w ^ (a 4 29/2020 f8949.pdf + v - o 6 + | 3 = 1104051 (1).pdf o n of 3 lo Bf1040 (2).pdf f10405se.pdf f8582.pdf x file:///C:/Users/betha/Downloads/f8582.pdf - + Fit to page ID Page view | A Read aloud L Add notes 6 5 6 Page 3 Form 8582 (2019) Worksheet 6-Allowed Losses (see instructions) Form or schedule and line number Name of activity to be reported on (see instructions) (a) Loss (b) Unallowed loss (c) Allowed loss Total . . . . . . . . . . . . . . . . . . Worksheet 7-Activities With Losses Reported on Two or More Forms or Schedules (see instructions) Name of activity: (b) (c) Ratio (d) Unallowedle) Allowed loss loss Form or schedule and line number to be reported on (see instructions): 1a Net loss plus prior year unallowed loss from form or schedule b Net income from form or schedule . . . . . . . T c Subtract line 1b from line 1a. If zero or less, enter-O- Form or schedule and line number to be reported on (see instructions): 1a Net loss plus prior year unallowed loss from form or schedule b Net income from form or schedule . . . . . . . T c Subtract line 1b from line 1a. If zero or less, enter-O- Form or schedule and line number to be reported on (see instructions): 1a Net loss plus prior year unallowed 6:02 PM Type here to search ORI - e w ^ a la 1 2912/2020 f8582.pdf x Bf8949.pdf o a f104051 (1).pdf o n of 3 lo Bf1040 (2).pdf Bf1040sse.pdf file:///C:/Users/betha/Downloads/f8582.pdf + v - h * ... + | 3 = - + Fit to page ID Page view AV Read aloud Add notes H F voncur . . C Subtract line 1b from line 1a. If zero or less, enter-O- Form or schedule and line number to be reported on (see instructions): 1a Net loss plus prior year unallowed loss from form or schedule. b Net income from form or schedule . . . . . . . c Subtract line 1b from line 1a. If zero or less, enter-O- Form or schedule and line number to be reported on (see instructions): 1a Net loss plus prior year unallowed loss from form or schedule. Net income from form or schedule . . . . . . . b C Subtract line 1b from line 1a. If zero or less, enter - - Total . . . . . . . . . . . . . . . . . . 1.00 Form 8582 (2019) Type here to search 9 w 4 4 (4) 5:03 PM