What tax year-end must an unincorporated entity with only one owner adopt?
A)The entity is free to adopt any tax year-end.
B)The entity must adopt the same year-end as its owner.
C)The entity must adopt a calendar year-end.
D)The entity may adopt any year-end except for a calendar year-end.

Question

Quizplus · Accepted Answer

An unincorporated entity with only one owner, often referred to as a sole proprietorship, must adopt the same tax year-end as its owner. This is because the entity is not considered separate from its owner for tax purposes, and its income and expenses are reported on the owner's personal tax return.

What Tax Year-End Must an Unincorporated Entity with Only One