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 these are effective strategies for mitigating double taxation

Question

Quizplus · Accepted Answer

All of the strategies listed (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 ways to mitigate the double tax associated with C corporations. Each strategy allows the corporation to reduce its taxable income, which results in a lower tax bill. However, it is important to ensure that these strategies are implemented in compliance with tax laws and regulations.

Which of the Following Is Not an Effective Strategy for Mitigating