James and Kate Sawyer were married on New Year's Eve of $2022.$ Before their marriage, Kate lived in New York and worked as a hair stylist for one of the city's top salons. James lives in Atlanta, where he works for a public accounting firm earning an annual salary of $$107,500.$ After their marriage, Kate left her job in New York and moved into the couple's newly purchased, $3,200-$square$-$foot home in Atlanta. Kate incurred $$2,950$ of moving expenses. The couple purchased the home on January $3,2023,$ by paying $$100,000$ down and obtaining a $$400,000$ mortgage for the remainder. The interest rate on this loan was $3$ percent, and the Sawyers made interest$-$only payments on the loan through June $30,2023($assume they paid exactly one$-$half of a year's worth of interest on this loan by June $30).$ On July $1,2023,$ the Sawyers borrowed an additional $$50,000,$ secured by the home, in order to make home improvements $($the loan was called a "home equity loan" by the lender$).$ The interest rate on the loan was $3$ percent $($assume they paid exactly one$-$half of a year's worth of interest on this loan by year$-$end$).$

Shortly after moving into the new home, Kate started a new business called Kate's Beauty Cuts LLC$.$ She set up shop in a $384-$square$-$foot corner room of the couple's home and began to get it ready for business. The room conveniently had a door to the outside, providing customers direct access to the shop. Kate paid $$2,400$ to have the carpet replaced with a tile floor. She also paid $$1,350$ to have the room painted with vibrant colors and $$800$ to have the room rewired for appropriate lighting. Kate ran an ad in the local newspaper and officially opened her shop on January $24,2023.$ By the end of the year, Kate's Beauty Cuts LLC generated $$43,000$ of net income before considering the home office deduction. The Sawyers incurred the following home$-$related expenditures during $2023$:

$$4,950$ of real property taxes.

$$2,375$ for homeowner's insurance.

$$3,150$ for electricity.

$$2,250$ for gas and other utilities.

They determined depreciation expense for their entire house was $$17,814.$

Also, on March $2,$ Kate was able to finally sell her one$-$bedroom Manhattan condominium for $$485,500.$ She purchased the condo, which she had lived in for six years prior to her marriage, for $$220,000.$

Kate owns a vacation home in Myrtle Beach, South Carolina. She purchased the home several years ago, largely as an investment. To help cover the expenses of maintaining the home, James and Kate decided to rent the home out. They rented the home for a total of $106$ days at fair market value $($this included $8$ days that they rented the home to James's brother Jack$).$ In addition to the $106$ days, Kate allowed a good friend and customer, Clair, to stay in the home for half$-$price for $2$ days. James and Kate stayed in the home for $6$ days for a romantic getaway and another $3$ days in order to do some repair and maintenance work on the home. The rental revenues from the home in $2023$ were $$19,000.$ The Sawyers incurred the following expenses associated with the home:

$$9,700$ of interest $($assume not limited by acquisition debt limit$).$

$$3,250$ of real property taxes.

$$2,050$ for homeowner's insurance.

$$1,350$ for electricity.

$$1,750$ for gas, other utilities, and landscaping.

$$5,575$ for depreciation.

Required:

Determine the Sawyers' taxable income for $2023.$ Disregard self$-$employment taxes and the qualified business income deduction. Assume the couple paid $$4,550$ in state income taxes and files a joint return. For determining deductible home office expenses and allocating expenses to the rental, the Sawyers want to use the tax court method for the year.

Note: Do not round any division. Round other intermediate calculations to the nearest whole dollar amount. Assume $365$ days in the current year.