Question: In 2000 Ms Ennis a head of household contributed 50 000

In 2000, Ms. Ennis, a head of household, contributed $50,000 in exchange for 500 shares of Seta stock. Seta is a qualified small business. This year, Ms. Ennis sold all 500 shares for $117,400. Her only other investment income was an $8,600 long-term capital gain from the sale of land. Her taxable income before consideration of her two capital transactions is $590,000.
a. Compute Ms. Ennis’s income tax and Medicare contribution tax for the year.
b. How would the computation change if Ms. Ennis acquired the Seta stock in 2012 instead of 2000?

View Solution:

Sale on SolutionInn
  • CreatedNovember 03, 2015
  • Files Included
Post your question