Which of the following fringe benefit does not impose a limit on the amount eligible as a tax-free benefit?
A)A child and dependent care program
B)Group term life insurance premiums
C)Education assistance plan
D)Excess capacity services (such as unsold airplane seats)

Question

Quizplus · Accepted Answer

Excess capacity services, such as unsold airplane seats provided by an employer, do not impose a limit on the amount that can be considered a tax-free benefit. This is because they represent a costless benefit to the employer, as they are essentially providing something that would otherwise go unused.

Which of the Following Fringe Benefit Does Not Impose a Limit