Jayzee Is a Single Taxpayer Who Operates a Sole Proprietorship

question 14

Essay

Jayzee is a single taxpayer who operates a sole proprietorship.He expects his taxable income next year to be $150,000, of which $125,000 is attributed to his sole proprietorship.Jayzee is contemplating incorporating his sole proprietorship.Using the 2019 single individual tax brackets and the corporate tax brackets, how much current tax could this strategy save Jayzee? (Ignore any Social Security, Medicare, or self-employment tax issues.)How much income should be retained in the corporation? (Use tax rate schedule)

---

Definitions:

Wheelchair

A chair mounted on wheels, used by individuals who are unable to walk due to illness, injury, or disability.

ADA Guidelines

Standards developed by the Americans with Disabilities Act to ensure accessibility and accommodation for individuals with disabilities.

Accessibility Guidelines

Standards and practices designed to make spaces, services, and resources usable and approachable for individuals with disabilities.

Americans With Disabilities Act

A civil rights law that prohibits discrimination against individuals with disabilities in all areas of public life, including jobs, schools, transportation, and all public and private places that are open to the general public.