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Sole proprietorship for 2019 what is the highest marginal income tax rate that an individual can...

Sole proprietorship
for 2019 what is the highest marginal income tax rate that an individual can pay?

Solutions

Expert Solution

Ans is 37%

Reason:-

Sole proprietor is taxed at an individual rate. Therefore, the maximum rate as per the following table is 37%.

2019 TAX YEAR – SINGLE
           Income Range                  Income Tax Rate        Long-Term Capital Gains Rate   
$0 to $9,700 10% 0%
$9,701 to $39,475 12% 0%
$39,476 to $84,200 22% 15% at $39,376
$84,201 to $160,725 24% 15%
$160,726 to $204,100 32% 15%
$204,101 to $510,300 35% 15%; 20% at $434,55
$510,301+ 37% 20%
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