Which of the following statements regarding a sole proprietorship is false?
A) A sole proprietorship is an unincorporated business operated by one individual.
B) Taxable income from a sole proprietorship is reported on Schedule D of the proprietor's individual income tax return.
C) Sole proprietors are entitled to deduct 50 percent of self-employment tax paid.
D) None of these statements are false.

Question

Quizplus · Accepted Answer

Taxable income from a sole proprietorship is reported on Schedule C (Profit or Loss from Business), not Schedule D, which is used for reporting capital gains and losses.

Which of the Following Statements Regarding a Sole Proprietorship Is