The deduction for a contribution to a retirement plan for an owner of a sole proprietorship is not taken on Schedule C.

Select one:

True

False

Question 6

Not yet answered

Points out of 1.00

Flag question

Question text

Assuming Lee owns a dog grooming business, which is a sole proprietorship, and he has net self employment income of $100,000 and he pays SE tax of $16,000 (assumed), the most that he can contribute to a Keogh plan is $25,000.

Select one:

True

False

Question 7

Not yet answered

Points out of 1.00

Flag question

Question text

Assuming Fred owns a fire arms training business, which is a sole proprietorship, and he has net self employment income of $140,000 and he pays SE tax of $20,000 (assumed), the most that he can contribute to a Keogh plan is $26,000.

Select one:

True

False

Question 8

Not yet answered

Points out of 1.00

Flag question

Question text

Partnerships can have special allocations in which income is allocated disproportionately to ownership

Select one:

True

False

Question 9

Not yet answered

Points out of 1.00

Flag question

Question text

A family limited partnership generally separates the value of the business equally between the general partner(s) and the limited partners.

Select one:

True

False

Question 10

Not yet answered

Points out of 1.00

Flag question

Question text

One of the benefits of a FLP is that transfers of the limited partnership interests can be completed at a substantial valuation discount.

Select one:

True

False