2025 FORM 1040 - SUMMARY (prepared from the filed return; client copy)
Taxpayers: Harlan T. Vickery (DOB 03/11/1955) and Rosalind M. Vickery (DOB 07/24/1958)
Filing status: Married filing jointly          State: Arizona (full-year resident)
Preparer: Desert Ledger Tax Services

INCOME
 1z  Wages ................................................... 0
 2a  Tax-exempt interest ..................................... 2,950
 2b  Taxable interest ........................................ 9,860
 3a  Qualified dividends ..................................... 24,300
 3b  Ordinary dividends ...................................... 31,750
 4a  IRA distributions ....................................... 14,000
 4b  Taxable amount .......................................... 14,000   (Harlan, voluntary, Dec 2025)
 5a  Pensions and annuities .................................. 38,400
 5b  Taxable amount .......................................... 38,400   (Rosalind, Arizona State Retirement System)
 6a  Social Security benefits ................................ 54,300   (Harlan 9 mo. x 4,180 = 37,620; Rosalind 12 x 1,390 = 16,680)
 6b  Taxable amount .......................................... 46,155
 7   Capital gain (Schedule D) ............................... 18,200   (fund distributions + sale of 400 sh VTI)
 8   Additional income (Schedule 1, line 10) ................. 48,689   (Schedule E rental, see below)
 9   Total income ............................................ 207,054
11   Adjusted gross income ................................... 207,054

DEDUCTIONS
12   Standard deduction (incl. age-65 additions) ............. 34,700
13b  Senior deduction (Sch. 1-A, after phase-out) ............ 5,154
15   Taxable income .......................................... 167,200

TAX AND PAYMENTS
16   Tax .................................................... 23,637
23   Other taxes (Form 8960 NIIT) ............................. 0
24   Total tax ............................................... 23,637
26   Estimated tax payments .................................. 26,000
34   Refund .................................................. 2,363

SCHEDULE E - Part I (one property)
 Property: 4-unit residential, 1418 E. Lemon St., Tempe AZ   Type: Multi-family residence   Fair rental days: 365
  3  Rents received .......................................... 98,400   (4 units x $2,050 x 12)
  9  Insurance ............................................... 6,200
 11  Management fees ......................................... 8,856
 14  Repairs ................................................. 11,900
 16  Taxes ................................................... 9,800
 18  Depreciation expense (Form 4562) ........................ 12,955
 20  Total expenses .......................................... 49,711
 21  Net income .............................................. 48,689

FORM 4562 / DEPRECIATION SCHEDULE (preparer worksheet, rental only)
 Asset                         Placed in service   Basis      Method      Life   2025 depr.   Accumulated thru 12/31/2025
 Building (excl. land $92,000) 07/2009             308,000    SL/MM       27.5   11,200       184,333
 Roof replacement              06/2016              28,000    SL/MM       27.5    1,018         9,673
 Kitchen remodels (2 units)    06/2019              21,000    SL/MM       27.5      737         4,790
 Land                          07/2009              92,000    n/a          -          0             0
 Totals                                            449,000                        12,955       198,796

ARIZONA FORM 140 (summary): AZ taxable income 112,410; AZ tax at 2.5% = 2,810. (Social Security subtracted on the AZ return.)

Preparer note on file: "Clients asked about selling the Tempe property next year. Recommend meeting before any signed contract."