Asked by Kayla Harrington on Jul 14, 2024
Verified
The sole proprietor has the right to deduct business losses on his individual tax return.
Sole Proprietor
A business owned and operated by a single individual, with no legal distinction between the owner and the business entity.
Deduct Business Losses
The process of reducing taxable income by the amount of losses incurred by a business during a financial period.
- Acknowledge the federal income tax considerations applicable to partnerships.
Verified Answer
AB
apple bananaJul 19, 2024
Final Answer :
True
Explanation :
All of the income of a sole proprietorship is income to its owner and must be reported on the sole proprietor's individual federal income tax return.Likewise,any business losses are deductible without limit on the sole proprietor's individual tax return.
Learning Objectives
- Acknowledge the federal income tax considerations applicable to partnerships.