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Skylar and Walter Black have been married for $25$ years. They live at $883$ Scrub Brush Street, Unit $52$B$,$ Las Vegas, NV $89125.$ Skylar is self$-$employed and Walt is a high school teacher. Skylar$$s Social Security number is $222-43-7690$ and Walt$$s is $700-01-0002.$ Walter$$s birthdate is January $21,1967,$ and Skylar$$s is February $14,1980.$ The Blacks provide all the support for Skylar$$s mother, Rebecca Backin $($Social Security number $411-66-2121),$ who lives in a nursing home in Reno, NV$,$ and has no income.

Walter$$s father, Alton Black $($Social Security number $343-22-8899),$ lives with the Blacks in Las Vegas. Although Alton received Social Security benefits of $$7,600$ in $2022,$ the Blacks provide more than half of Alton$$s support. If Rebecca or Alton qualify as dependents, Skylar and Walt can claim a $$500$ other dependent credit for each.

Walt$$s earnings from teaching are:

A W$-2$ form shows details of Walter Black$$s earnings and income tax withholdings for $2022.$ The form is divided into two Panels. The O M B number is $1545-0008.$ The first panel contains a to f sections. It shows filled$-$in fields for the following: a$.$ employee$$s social security number: $700-01-0002($highlighted$),$ b$.$ employer identification number $($E I N$)$: $31-1239867,$ c$.$ employer$$s name, address, and ZIP code: information about Las Vegas School District, e$.$ employee$$s first name, initial, and last name, and f$.$ employee$$s address and ZIP code. To be filled$-$in field in this panel is d$.$ control number. The second panel contains $1$ to $20$ sections. It shows filled$-$in fields for $1.$ Wages, tips, other compensation: $55000\mathrm{.}00($highlighted$),2.$ Federal income tax withheld: $3800\mathrm{.}00($highlighted$),3.$ Social security wages: $55000\mathrm{.}00,4.$ Social security tax withheld: $3410,5.$ Medicare wages and tips: $55000\mathrm{.}00,6.$ Medicare tax withheld: $797\mathrm{.}50,12$a$.$ See instructions for box $12$: D D$,7,900\mathrm{.}00,13.$ Retirement plan checked, and $15.$ State: N V$,$ employee$$s 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 Employee$$s 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 A$1$A 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 master$$s degree in chemistry. His employer has an education assistance program that paid Walt $$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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