Which of the following is not a true statement?
A) For shareholder-employees who own 2 percent or less of the entity, the S corporation gets a tax deduction for qualifying fringe benefits, and the benefits are nontaxable to the employees.
B) For shareholder-employees who own more than 2 percent of the S corporation, the S corporation gets a tax deduction, but the otherwise qualifying fringe benefits are taxable to the more-than-2-percent shareholder-employees.
C) S corporation owners have a tax incentive to pay themselves a low salary.
D)An S corporation shareholder's allocable share of ordinary business income (loss) is not classified as self-employment income for tax purposes.
E)None of these

Question

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The Answer of Which of the following is not a true statement?
A) For shareholder-employees who own 2 percent or less of the entity, the S corporation gets a tax deduction for qualifying fringe benefits, and the benefits are nontaxable to the employees.
B) For shareholder-employees who own more than 2 percent of the S corporation, the S corporation gets a tax deduction, but the otherwise qualifying fringe benefits are taxable to the more-than-2-percent shareholder-employees.
C) S corporation owners have a tax incentive to pay themselves a low salary.
D)An S corporation shareholder's allocable share of ordinary business income (loss) is not classified as self-employment income for tax purposes.
E)None of these

Which of the Following Is Not a True Statement