One Disadvantage of an S Corporation Is That the Cost

question 83

True/False

One disadvantage of an S corporation is that the cost of many benefits-insurance, meals, lodging, and others-that are paid to shareholders with 2 percent or more of stock-cannot be deducted as business expenses for tax purposes and are considered taxable income.

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Definitions:

Gonorrhea

A sexually transmitted infection caused by the bacterium Neisseria gonorrhoeae, often resulting in pain during urination and discharge.

Chronic Smoking

Chronic smoking is the long-term use of tobacco products, which poses significant health risks, including lung disease, cardiovascular disease, and cancer.

Immune Disorders

Health conditions caused by abnormal activity of the body's immune system, either overactive, underactive, or malfunctioning.

Heart Disease

A broad term for any condition affecting the heart's structure and function.