Tax-Exempt Interest Earned by an S Corporation Is Not Reported

question 90

True/False

Tax-exempt interest earned by an S corporation is not reported to its shareholders because it is excluded from the shareholders' gross income.

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Definitions:

Mill Rate

A tax rate used to calculate local property taxes, expressed in a millage rate, which is one thousandth of a currency unit.

Agricultural Land

Land designated for the purpose of farming and cultivation to produce food and other agricultural products.

Property Taxes

Taxes levied by local governments based on the assessed value of real estate property.

HST Remittance

The process of sending payments of the Harmonized Sales Tax collected by businesses to the relevant tax authority.