Comprehensive Problem $4-1$

Skylar and Walter Black have been married for $25$ years. They live at $883$ Scrub Brush Street, Apt. $52$B$,$ Las Vegas, NV $89125.$ Skylar is a stay$-$at$-$home parent and Walt is a high school teacher. His W$-2$ form is located on the next tab. Skylar's Social Security number is $222-43-7690$ and Walt's is $700-01-0002.$ Neither are age $65$ or older. 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 $$7,600$ in $2021,$ the Blacks provide over half of Alton's support. Skylar and Walt claim a $$500$ other dependent credit each for Rebecca and Alton.

Walt$$s earnings from teaching are included on the W$-2($see separate tab$).$

The Blacks moved from Maine to Nevada. As a result, they sold their house in Maine on January $4,2021.$ They originally paid $$75,000$ for the home on July $3,1996,$ but managed to sell it for $$598,000.$ They spent $$14,000$ on improvements over the years. They are currently renting in Las Vegas while they look for a new home.

The Blacks received a $1099-$DIV from their mutual fund investments $($see separate tab$).$

The Blacks own a ski condo located at $123$ Buncombe Lane, Brian Head, UT $84719.$ The condo was rented for $184$ days during $2021$ and used by the Blacks for $16$ 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 $109816,000$

Homeowners' association dues $5,200$

Utilities $3,400$

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. The Blacks received a $$5,600$ EIP in $2021.$

Required:

Complete Form $1040$ and the schedules and forms provided for the Blacks.

Assume the taxpayers had health coverage for the entire year.

Neither taxpayers wants to contribute to the presidential election campaign.

If an amount box does not require an entry or the answer is zero, enter $"0".$

Do not round any percentages.

If required, round your answers to the nearest dollar.

If required, enter a "loss" as a negative number on the tax form. Do not enter deductions as negative numbers.

Special instructions for Form $8582$: If required, use the minus sign to enter a "loss" as a negative number on the lines $1$d$,4$ and $16.$ However, per the instructions on the tax return, enter all numbers in Part II as positive amounts.