Identify the tax issue-sole proprietorship


Problem:

Identify the tax issue or issues suggested by the following situations and state issue in the form of a question.(need three questions)

Ellie has operated a sole proprietorship for six years during which net profit has been stable and Ellie's marginal tax rate has been a constant 25 percent. Ellie's projects that her profit next year will be the same as this year. Consequently, she estimates her tax cost for next year based on a 25 percent rate. Late in the year, Ellie's husband graduated from law school and accepted an excellent offer of employment from a local firm.

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Accounting Basics: Identify the tax issue-sole proprietorship
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