Which of the following non-cash employee benefits would be excluded from the taxable income of the employee? Unless indicated otherwise all benefits are provided on a non-discriminatory basis.

Question

Quizplus · Accepted Answer

The non-cash benefit that would be excluded from taxable income is option C. As an airline employee, Carter is allowed to fly for free on a space available basis. This benefit is a common practice in the airline industry and is excluded from taxable income. The other options (A, B, D, and E) would be considered taxable income for the employee. Executive automobiles are typically considered a form of compensation, free vacations are considered a fringe benefit, free housing is considered a form of compensation, and all non-cash benefits are generally taxable unless specifically excluded by the IRS.

Which of the Following Non-Cash Employee Benefits Would Be Excluded