Question

Sole Proprietors pay personal income taxes, as well as corporate income taxes, on all profits generated...

Sole Proprietors pay personal income taxes, as well as corporate income taxes, on all profits generated by the company.

True
False
Business   Operations-Management   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

It is True that Sole Proprietors pay personal income taxes, as well as corporate income taxes, on all profits generated by the company.

It is important and essential for a sole proprietor to report all business income as well as losses on personal income tax return as the business is taxed along with it rather separately. It is called as “pass through” taxation as the profits of the business pass through the business which need to be taxed for the personal tax return.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
For tax purposes, sole proprietorships pay sole proprietors guaranteed payments as compensation for their services. A....
For tax purposes, sole proprietorships pay sole proprietors guaranteed payments as compensation for their services. A. True B. False
which of the following statements is true of a sole proprietorship? a] a sole proprietorship has...
which of the following statements is true of a sole proprietorship? a] a sole proprietorship has to pay business income taxes b] a sole proprietorship joins two or more individuals as co-owners c]the sole proprietors is personally liable for the liabilities of the business d] a sole proprietorship is taxed separately from the owner
Larry is the sole owner of Larry’s Moving Company, Incorporated (LMC). In one year, LMC collects...
Larry is the sole owner of Larry’s Moving Company, Incorporated (LMC). In one year, LMC collects $2,000,000 from customers to help them move. LMC’s equipment depreciates in value by $200,000. LMC pays $1,400,000 to its workers, who pay $500,000 in taxes on this income. LMC pays $175,000 in corporate income taxes and pays Larry a dividend of 100,000. Larry pays taxes of $50,000 on this dividend income. LMC retains $125,000 of earnings in the business to finance future expansion. How...
Calculate the tax disadvantage ( = corporate after-tax income to owners - sole proprietorship after-tax income...
Calculate the tax disadvantage ( = corporate after-tax income to owners - sole proprietorship after-tax income to owners) to organizing a U.S. business as a corporate versus a sole proprietorship under the following conditions: Assume that all earnings will be paid out as cash dividends. Operating Income (operating profit before taxes) will be $116 under both organizational forms. The effective corporate tax rate = Tc = 40%. The average personal tax rate for the owners is 45% and assume that...
answer the question on the basis of the following national income data. all figures are in...
answer the question on the basis of the following national income data. all figures are in billions of dollars. Personal taxes $23 net private domestic investment 33 net exports 6 national income 278 u.s. exports 20 gross private domestic investment 56 disposable income 220 taxes on production and imports 32 undistributed corporate profits 15 proprietors' income 45 net foreign factors income 0 statistical discrepancy 0 refer to the data. personal consumption expenditures:
1. All of the following are characteristics associated with a sole proprietorship, EXCEPT: a. income and...
1. All of the following are characteristics associated with a sole proprietorship, EXCEPT: a. income and expense items are reported on Schedule C b. the owner cannot report passive losses on real estate investments on Schedule D c.​once calculated, its net income is reported on Form 1040 d.​the owner must pay self-employment taxes to fund both the Social Security and Medicare systems 2.​A sole proprietor is fully liable for the debts and obligations of the business. (True/False). 3.​Each partner in...
Which statements are true? Check all that apply: All profits from a sole proprietorship are passed...
Which statements are true? Check all that apply: All profits from a sole proprietorship are passed through to the owner for paying taxes. A sole proprietorship offers limited liability. A sole proprietorship is easy to set up. It is impossible to sell a part of your ownership stake in a sole proprietorship. A sole proprietorship is subject to few government regulations.
If the government were to simultaneously cut the personal income tax and the corporate profits tax,...
If the government were to simultaneously cut the personal income tax and the corporate profits tax, the equilibrium interest rate Select one: would fall. would be unaffected. would rise. would be ambiguous.
Unlike national income, personal income Select one: a. excludes retained earnings, indirect business taxes, corporate income...
Unlike national income, personal income Select one: a. excludes retained earnings, indirect business taxes, corporate income taxes and social insurance contributions, and includes interest and transfer payments received by households from the government. b. excludes retained earnings, indirect business taxes corporate income taxes, social insurance contributions and interest and transfer payments received by households from the government. c. includes retained earnings, indirect business taxes, corporate income taxes and social insurance contributions, and excludes interest and transfer payments received by households...
If personal income exceeds national income in a particular year, we can conclude that Multiple Choice...
If personal income exceeds national income in a particular year, we can conclude that Multiple Choice transfer payments exceeded the sum of Social Security contributions, corporate income taxes, and taxes on production and imports. the sum of Social Security contributions, corporate income taxes, and undistributed corporate profits exceeded transfer payments. consumption of fixed capital and taxes on production and imports exceeded personal taxes. transfer payments exceeded the sum of Social Security contributions, corporate income taxes, and undistributed corporate profits.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT