Ellie has operated a sole proprietorship for six years during which net profit has been stable and Ellie’s marginal tax rate has been a constant 24 percent. Ellie projects that her profit next year will be the same as this year. Consequently, she estimates her tax cost for next year based on a 24 percent rate. Late in the year, Ellie’s husband graduated from law school and accepted an excellent offer of employment from a local firm.

Identify the tax issue or issues suggested by the following situations and state each issue in the form of a question.