Which of the following is not an effective strategy for mitigating the double tax associated with C corporations?
A) Paying a salary to a shareholder-employee.
B) Leasing property from a shareholder.
C) Borrowing money from a shareholder.
D) Paying fringe benefits to a shareholder-employee.
E) All of the choices are effective strategies for mitigating double taxation.

Question

Quizplus · Accepted Answer

All of the choices (paying a salary to a shareholder-employee, leasing property from a shareholder, borrowing money from a shareholder, and paying fringe benefits to a shareholder-employee) can be effective strategies for mitigating double taxation associated with C corporations. Therefore, E is the correct answer.

Which of the Following Is Not an Effective Strategy for Mitigating