Your new clients are a married couple, Kaylee and Simon Tam. studKaylee is a doctor and Simon is a

graphic designer. Simon is $32$ years old, Kaylee is $30$ years old, and neither are blind. They have two

children, Que and Winston Tam, twins born in $2018.$ Their social security numbers are $111-11-1111$

and $222-22-2222,$ respectively.

Their primary home address is $1996$ Serenity Lane, Peoria, AZ $85383,$ on which they have a $$900,000$

mortgage taken on June $18,2016.$ They paid $$8,691$ in real estate taxes. The Tams also purchased a

vacation home in Florida in June $2019$ with cash. There is no outstanding mortgage on the vacation

home. There is no $20231098$ interest statement for vacation home because there was no interest owed

or paid. The cost basis of the vacation home is $$500,000.$ $$100,000$ is allocated to the land. They

rented out the vacation home for $45$ days in $2023.$ Simon actively manages the rental property.

Rental income and expenses

Rental $45$ days$/$year

Rental Income: $20,500$

Homeowners Insurance $$2,750$

Cleaning Service $$1500$

Real Estate Taxes $$7,156$

Air Conditioning Repair $$3,656$

Advertising rental property $$200$

In $2023,$ Kaylee contributed $22,500$ and Simon contributed $7,500$ to qualified retirement accounts. The

vacation home was purchased June $2019.$ This makes $2023$ year $5$ for depreciation on residential rental

property. The full address is $1059$ Ocean Drive, Jacksonville Beach, FL $33250.$ The Tams use the

vacation home $14$ days each year for personal use.

They made contributions by check to the United Way Charity in the amount of $$500$ during the year in

$5$ checks for $$100$ each. They did not receive a receipt. They also donated clothes and home goods to

the local Goodwill with a fair market value of $$450.$ No single donation was worth more than $$250.$

They also made a contribution to the governor$$s re$-$election campaign of $$1,000.$

Kaylee also received or $($paid$)$ the following during the year:

Life Insurance Payment$-$Mother$$s passing $$150,000$

Pays her first spouse $1,000$ in monthly alimony payments from a March $2015$ divorce

Her ex$-$spouse SSN is $555-55-5555$

Interest on medical school loans $7,500.$

Simon and Kaylee paid or incurred the following medical expenses during the year:

Preventive surgery $($unreimbursed by insurance$)$ $$25,000$

Doctors $($unreimbursed by insurance$)$ $$10,000$

Prescriptions $($unreimbursed by insurance$)$ $ $8,000$

On January $1,2022($prior year$),$ Simon started a photography business in which he takes bridal and

wedding photographs. He does not do any of the professional printing. He provides all of the original

negatives to his clients on a password$-$protected website as part of his service. Simon rents all of the

camera equipment from a friend and does not currently own any equipment himself. The photography

business uses the cash method of accounting. The business did not have any obligation to file a Form

$1099$ to any payee during the year. The business has the following revenue and expenses for the year:

Gross Revenue $$7,500$

Photographic supplies $ $630$

Advertising $ $500$

Camera rental $$1,250$

Website hosting fee $ $300$

Class to learn how to use

New camera technology $ $700$

If a refund is due, the Tams would like a check mailed to them.

The Tams provided the following documents for your review. Please also see Kaylee Tam$$s Poker Diary saved

as a tab in the Blank Excel Workpapers file