An owner takes $35,000 out of her business as a salary for 2012. Compare the income and FICA or self-employment tax burdens of an individual who owns a business that has operating income of $60,000 if the business is
a. a C corporation
b. a sole proprietorship
2) Taxpayer B has the following gains and losses from property transactions.
Long-term capital gain $5,000
Long-term capital loss 8,000
Section 1231 gain 11,000
Section 1231 loss 9,000
Short-term capital gain 2,000
Short-term capital loss 4,000
What is the effect on the taxpayer's taxable income if Taxpayer B is:
a. a C corporation?
b. an individual?