S corporation shareholders who own more than 2% of the outstanding stock are eligible for the following tax-free benefits
A)group term life insurance exclusion under Sec.79 for premiums paid for up to $50,000 coverage.
B)exclusion for meals and lodging furnished for the convenience of the employer.
C)exclusion from income for premiums paid for accident and health and medical reimbursement plans.
D)None of the above.

Question

Quizplus · Accepted Answer

Shareholders owning more than 2% of an S corporation are treated as partners for fringe benefit purposes, meaning they are not eligible for tax-free benefits like those listed in A, B, and C.

S Corporation Shareholders Who Own More Than 2% of the Outstanding