Mr. B owns 10 percent of the stock of ABC Inc. and is the corporations director of

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Mr. B owns 10 percent of the stock of ABC Inc. and is the corporation’s director of marketing. ABC has a medical insurance plan for its employees. This year, it paid $1,400 of premiums to the insurance carrier for Mr. B’s coverage. Contrast the treatment of this payment to Mr. B if ABC is a regular corporation or an S corporation.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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