Question
In 2000, Ms. Ennis, a head of household, contributed $67,000 in exchange for 670 shares of Seta stock. Seta is a qualified small business. This
In 2000, Ms. Ennis, a head of household, contributed $67,000 in exchange for 670 shares of Seta stock. Seta is a qualified small business. This year, Ms. Ennis sold all 670 shares for $126,000. Her only other investment income was an $8,800 long-term capital gain from the sale of land. Her taxable income before consideration of her two capital transactions is $590,000. Assume the taxable year is 2022. Use Individual tax rate schedules and Tax rates for capital gains and qualified dividends. Required: How would the computation change if Ms. Ennis acquired the Seta stock in 2019 instead of 2000? compute taxable income, total income tax, medicare contribution tax, and total tax.
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