Generally, a Closely Held Family Corporation Is Not Permitted to Take

question 78

True/False

Generally, a closely held family corporation is not permitted to take a deduction for a salary paid to a family member in calculating corporate taxable income.

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Definitions:

Labor Force

The labor force comprises all the working-age population that is either employed or actively seeking employment.

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Households

Units consisting of one or more people who live in the same dwelling and share meals or living accommodation; considered basic units of consumer behavior.

Percentage

A mathematical term expressing a number or ratio as a fraction of 100, used to compare proportions and compute changes in quantities.