Indicate by a C if the characteristic applies to a regular corporation, an S if it applies to an S corporation, and a P if it applies to a partnership. A characteristic can apply to more than one entity; write a brief explanation if a characteristic may only apply under certain conditions.
-Owners may participate in all tax-free employee fringe benefits.
A)applies to a regular corporation(C)
B)applies to an S corporation(S)
C)applies to a partnership(P)

Question

Quizplus · Accepted Answer

Owners of a regular corporation (C corporation) can participate in all tax-free employee fringe benefits as long as they are treated as employees of the corporation. S corporation and partnership owners have restrictions on their ability to participate in these benefits tax-free, especially if they own more than 2% of the business.

Indicate by a C If the Characteristic Applies to a Regular