Tax planning for the sole proprietor.

• Author: Ellentuck, Albert B.

Facts: Hubert T Gillis owns and operates a grocery store on the ground floor of the two-story building in which he lives. The store has several other workers, including (at times) Mr. Gillis's wife and children. The store takes up the entire ground floor, and Mr. Gillis uses a room on the second floor to do the business's paper-work. Issue: What tax advice and planning can Mr. Gillis's tax adviser give him?

Analysis

Businesses operated as sole proprietorships face a myriad on minimizing bussiness income and maximizing business of tax issues (and...