Moana is a single taxpayer who operates a sole proprietorship. She expects her taxable income next year to be $250,000, of which $200,000 is attributed to her sole proprietorship. Moana is contemplating incorporating her sole proprietor-ship. Using the single individual tax brackets and the corporate tax brackets,find out how much current tax this strategy could save Moana (ignore any So-cial Security, Medicare, or self-employment tax issues). How much incomeshould be left in the corporation?
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Answer 1
Answer:
well, around atleast 100,000 to 150.000 including taxes of all kinds but of 250,000 i think around 200-175 k should be left , if not, more
