Questions: Sole proprietorship Form 1120 Form 1120S Form 1065 Schedule C Partnership Match the business entity with the tax form used to report taxable income.

The answer is:

• Sole proprietorship: Schedule C
• Partnership: Form 1065

Explanation:

1. Sole proprietorship: Schedule C

   • A sole proprietorship is a business owned and operated by one individual. The owner reports the business income and expenses on their personal tax return using Schedule C (Profit or Loss from Business) as part of Form 1040. This form is used to calculate the net profit or loss of the business, which is then included in the owner's personal income.

2. Partnership: Form 1065

   • A partnership is a business entity where two or more individuals share ownership. Partnerships must file Form 1065 (U.S. Return of Partnership Income) to report the business's income, deductions, gains, losses, etc. The partnership itself does not pay income tax. Instead, it passes through any profits or losses to its partners, who then report their share on their individual tax returns using Schedule K-1 (Form 1065).

Incorrect options:

• Form 1120: This form is used by C corporations to report their income, gains, losses, deductions, and credits. It is not applicable to sole proprietorships or partnerships.
• Form 1120S: This form is used by S corporations to report income, gains, losses, deductions, and credits. S corporations are a different type of business entity that combines the benefits of incorporation with the tax advantages of a partnership. It is not applicable to sole proprietorships or partnerships.