The tax treatment of fringe benefits for more-than-2% shareholder-employees of S corporations is less favorable than that for nonowners or employees of some other entities. What fringe benefits are subject to this limitation? What fringe benefits escape this limitation?
Answer to relevant QuestionsSean Moon is president, secretary, treasurer, sole director, and sole shareholder of Streetz, an S corporation real estate company. He manages all aspects of the company’s operations, and he is the only person working at ...What techniques can the shareholders of a C corporation use to reduce its taxable income and thereby minimize or avoid double taxation? How can the IRS challenge these techniques? What are the advantages of a limited liability company compared to an S corporation? Sandra and Renee each own 50% of the stock of Olive, an S corporation. They acquired their stock four years ago when Olive was formed. They have decided to dispose of their ownership interests in the corporation, and a ...Andrea is an employee of Fern Corporation. She also has her own business working as a life coach. For 2015, Andrea's wages from Fern were $210,000. Her self-employment income was $30,000. a. Compute the payroll, ...
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