An Individual Who Owns a Proprietorship Must Report Profit from the Proprietorship

question 86

True/False

An individual who owns a proprietorship must report profit from the proprietorship on his/her Federal income tax return.

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Definitions:

CCA Rate

Capital Cost Allowance rate, which is the rate at which businesses in certain jurisdictions can claim depreciation on assets for tax purposes.

Marginal Tax Rate

The percentage of tax applied to an individual or entity's next dollar of income, showing the impact of the last dollar earned on their tax liability.

Taxable Income

The amount of an individual’s or a company's income used to determine how much tax they owe the government in a given tax year.

Cash Flow

This term refers to the net amount of cash and cash-equivalents being transferred into and out of a business.