In which of the following entities may an owner-employee benefit from all employee tax-free fringe benefits?
A)C corporation
B)S corporation
C)Partnership
D)Sole proprietorship

Question

Quizplus · Accepted Answer

Owner-employees of C corporations can benefit from all employee tax-free fringe benefits, as the tax code allows C corporations to provide these benefits to all employees, including those who are also owners, without discrimination. S corporations, partnerships, and sole proprietorships have restrictions that limit the extent to which owner-employees can receive tax-free fringe benefits.

In Which of the Following Entities May an Owner-Employee Benefit