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Question: James Bell and wife run a printing business. They have been operating as partnership for a couple of years. They expect that within the coming years there will be a significant increase in their sales, as they sign a five year contract with Aldi for contract printing. They estimate their profit before income tax to be around $360,000 this financial year. Long before running the printing business, they purchased a couple of rental properties which have been generating more than sufficient income and cash flows for day-to-day personal experience.
What form of business structure should the business take? Please give reasons as to why the business should take this route?
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This year the only significant expense that they incurred was an unreimbursed medical expense of $3,200. If Jon and Holly together have AGI of $42,000, what is the amount of their standard deduction this year?
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