Fringe benefits for a 15 percent owner/employee generally are deductible by the employer but are excludable income for the employee when the employer is a
A)Proprietorship, partnership, or S or C corporation
B)Partnership or S or C corporation
C)S or C corporation
D)C corporation

Question

Quizplus · Accepted Answer

Fringe benefits for a 15 percent owner/employee are generally deductible by the employer and excludable from the employee's income when the employer is a C corporation. This is because C corporations are treated as separate tax entities, allowing them to provide tax-free fringe benefits to employees, including owner-employees.

Fringe Benefits for a 15 Percent Owner/employee Generally Are Deductible