Profits from a sole proprietorship are reported as taxable income and

A) can be reported as a deduction.

B) are subject to a self-employment tax of approximately 15%.

C) can be deferred to the next tax year.

D) can't be taxed again in a future tax year.

Profits from a sole proprietorship are reported as taxable income and (B) are subject to a self-employment tax of approximately 15%.

Explanation:

Sole proprietors are asked to contribute to both the Social Security and Medicare systems, this type of contributions is known as the "self-employment taxes."

Self-employment taxes are considered equal to the payroll tax in case of an employees of a business. Regular employees are said to make their contributions to the above mentioned two programs in form of deductions fr, sole proprietors make such contributions when the pay their income tax

The rate of self-employment tax is 15.3%, which is further divided as 12.4% of Social Security and 2.9% of Medicare.

Thus we can say that Profits from a sole proprietorship are reported as taxable income and (B) are subject to a self-employment tax of approximately 15%.

Profits from a sole proprietorship are reported as taxable income and ...

B.)

are subject to a self-employment tax of approximately 15%.

Explanation:

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