The Blacks moved from Maine to Nevada. As a result, they sold their house in Maine on January They originally paid $ for the home on July but managed to sell it for $ They spent $ on improvements over the years.

The Blacks own a ski condo located at Buncombe Lane, Brian Head, UT The condo was rented for days during and used by the Blacks for 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

$

Mortgage interest reported on Form

Homeowners association dues

Utilities

Maintenance

Depreciation assume fully depreciated

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 AA Car Wash and is located at Cutler Ave NE Las Vegas, NV The employer identification number is 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 Her financial results for 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 square feet in their square foot home. They pay rent of $ per year and their utilities are $

In Walter loaned his friend, Hank Shorter $ In 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 $ in His total tuition was $ 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 $ and $ per year on this venture but has never made any money. In a bakery in town bought some of Walters formula for $ to try a new blueberry muffin formula but did not purchase any additional formula after the first attempt. Walter spent $ on lab supplies during Walter does not realistically expect to ever turn a profit, he just does not care for the existing artificial blueberry flavors.

Required: Complete the Blacks federal tax return for Use Form Schedule Schedule Schedule C Schedule D Form Schedule E page only Schedule SE Form and Form to complete their tax return.

BRyan and Blake Lively are married filing jointly taxpayers. Ryans birthdate is August and Social Security number is Blakes birthdate is March and their Social Security number is They live at Thornton Road, Nashua, NH Both are selfemployed.

The Livelys received the following statement from their brokerage account:

A form received by the Livelys. It reads as follows, Combined forms This is important tax information and is being furnished to the IRS except as indicated If you are required to file a return, a negligence penalty or other sanction may be imposed on you, if this income is taxable and the IRS determines that it has not been reported. Copy B for recipient. OMB No Pooled Investments, Wall Street, Twentyfourth Floor, New York, NY Account Number: Tax ID: Payer\'s Federal Tax ID: Financial advisorphone: Monty Cook Ryan and Blake Lively, Thornton Road, Nashua, NH Form B Box : Gross proceeds. Box security description CUSIP Green Lantern Inc. Box : Not checked. Quantity sold: Box b Date acquired: Proceeds from Broker and Barter Exchange transactions: Box : Basis reported to IRS. Box c Date sold or disposed: Box d Proceeds: Box : Type of gain or loss: Longterm. Box e Cost or other basis: Box g Wash sale loss disallowed: Blank. GainLoss amount: Gain Form INT. Interest income. Box interest income: Box Interest on US savings bonds and treasury obligations: To be filledin boxes are as follows. Box Federal income tax withheld: Box early withdrawal penalty, Box Investment expenses, Box Foreign tax paid, Box Foreign country or US possession, Box Taxexempt interest, B