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:

Digital Divide

The gap between those who have easy access to computers and the internet, and those who do not, highlighting disparities in technological access and literacy.

Low-Income Families

Households with total earnings that fall below a specific threshold defined by national or regional authorities, often leading to financial strain.

Negative Media Reports

Media coverage that portrays individuals, groups, events, or issues in an adverse light, often focusing on problems, controversies, or failures.

Digital Divide

The gap between individuals who have access to modern information and communication technology and those who do not.