n 2000, Ms. Ennis, a head of household, contributed $76,000 in exchange for 760 shares of Seta stock. Seta is a qualified small business. This year, Ms. Ennis sold all 760 shares for $124,000. Her only other investment income was an $7,700 long-term capital gain from the sale of land. Her taxable income before consideration of her two capital transactions is $549,000. Assume the taxable year is 2022. Use Individual tax rate schedules and Tax rates for capital gains and qualified dividends. Compute Ms. Ennis’s income tax and Medicare contribution tax for the year. How would the computation change if Ms. Ennis acquired the Seta stock in 2019 instead of 2000?

Tom owns 20% of a ptrsp in which he materially participates. Assume Tom's basis in a ptrsp is $6,300 at the beginning of the year. During the year the ptrsp incurs $50,000 in losses and its liabilities increase by $15,000. How much can Tom deduct? Assume Tom had $1,000 of passive income

Allie gifted 100 shares of Fieri stock to Jim.  Allie (the donor) had a basis in the stock of $55 per share and had held the stock for more than two years prior to the gift.  At the time of the gift, the FMV of each share was $40.  What are the tax consequences to Jim if he sells the stock two years after the date of the gift for $48 per share? $700 loss $800 gain $1,500 gain No gain or loss

Dave and his friend Stewart each owns 50 percent of KBS. During the year, Dave receives $75,000 compensation for services he performs for KBS during the year. He performed a significant amount of work for the entity, and he was heavily involved in management decisions for the entity (he was not a passive investor in KBS). After deducting Dave's compensation, KBS reports taxable income of $30,000. How much FICA and/or self-employment tax is Dave required to pay on his compensation and his share of the KBS income if KBS is formed as a C corporation, an S corporation, or a limited liability company (taxed as a partnership) (ignore the 0.9 percent additional Medicare tax)? (Do not round any percentage calculations. Round other intermediate calculations and final answers to the nearest whole dollar amount.) C Corporation S Corporation Limited liability company

Kyle, a single taxpayer in the 37% tax bracket engaged in the following disposition transactions during this tax year. You may assume the dispositions were made to unrelated parties unless told otherwise: 1. He sold Intel stock purchased 6 months ago for $175,000. Adjusted basis = $63,0002. He sold Microsoft bonds purchased 2 years ago for $300,000. Adjusted basis = $345,0003. He sold a building used in business for $3.75 million. His adjusted basis was $2 million. Accumulated Depreciation was $800,000. He purchased the asset in 2011.4. He sold land used in business for $800,000. His adjusted basis was $600,0005. He sold manufacturing equipment used in business for $280,000. His adjusted basis was $195,000. He originally purchased the equipment three years ago for $325,0006. He sold an antique car for $1 million. He held the car for six months and his basis in it was $825,000.7. Kyle's grandfather died earlier this year and he bequeathed stock to Kyle. Kyle sold stock that he inherited…

Eve is a physician who earns $400,000 from her practice during the current year. This year, she acquired a passive activity that produces a loss of $150,000. Deductible loss?

Margaret Lindley paid $15,160 of interest on her $301,600 acquisition debt for her home (fair market value of $501,600), $4,160 of interest on her $30,160 home- equity debt used to buy a new boat and car, $1,160 of credit card interest, and $3,160 of margin interest for the purchase of stock. Assume that Margaret Lindley has $10,160 of interest income this year and no investment expenses. How much of the interest expense may she deduct this year? Multiple Choice O₁ O $23,640 $22,480 $19,320 $18,320 None of the choices are correct.

In the current year, Pearl Corporation has $30,000 of current and accumulated E&P. On June 3, Pearl Corporation distributes a parcel of land (a capital asset) worth $120,000 to Betty, a shareholder. The land has a $70,000 adjusted basis to Pearl Corporation and is subject to a $16,000 mortgage, which Betty assumes. Betty’s basis in her Pearl Corporation stock is $10,000 (Ignore any tax effects on E&P). What is Betty's holding period in the land?

At her death, Chow owned 55% of the stock in Finch Corporation, with the balance held by family members. In the past five years, Finch has earned average net profits of $1,740,000, and on the date of Chow's death, the book value of its stock is $4,350,000. An appropriate rate of return for Finch’s business is in is 5.9%. What value would the IRS argue that the stock Chow owned should be included in her estate?

Braeden received 100 shares of Cranston Corporation stock from his uncle as a gift on July 20, 2020, when the stock had a $24,000 FMV. His uncle paid $18,000 for the stock on April 12, 2004. The taxable gift was $24,000, because his uncle made another gift to Braeden for $38,000 in January and used the annual exclusion. The uncle paid a gift tax of $3,600. Without considering the transactions below, Braeden's AGI is $70,000 in 2021. No other transactions involving capital assets occur during the year. Read the requirement. a. b. C. AGI prior to sale of stock + Gain (loss) on sale of stock = + + + Requirement || = AGI Analyze each transaction below, independent of the others, and determine Braeden's AGI in each case. (Do not round intermediary calculations. Only round the amounts you input in the cells to the nearest dollar. Use a minus sign or parentheses to enter a loss.) a. He sells the stock on October 12, 2021, for $30,500. b. He sells the stock on October 12, 2021, for $16,500. c.…