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In 2000, Ms. Ennis, a head of household, contributed $79,000 in exchange for 790 shares of Seta stock. Seta is a qualified small business. This
In 2000, Ms. Ennis, a head of household, contributed $79,000 in exchange for 790 shares of Seta stock. Seta is a qualified small business. This year, Ms. Ennis sold all 790 shares for $119,000. Her only other investment income was an $9,000 long-term capital gain from the sale of land. Her taxable income before consideration of her two capital transactions is $522,000. Assume the taxable year is 2018. Use Individual tax rate schedules and Tax rates for capital gains and qualified dividends.
- Compute Ms. Ennis's income tax, Medicare contribution tax, and total tax for the year.
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