Posted by: Howard J. Kass, CPA, AEP®
Taxation of fringe benefits is a topic that has long been a source of confusion for both taxpayers and tax practitioners.
In some situations, partners of an entity are treated strictly as partners. Consequently, this may make them ineligible for tax-free benefits.
In other instances, partners are treated as employees and are eligible to share in the benefit in the same manner as any other employee. Whether or not a partner is treated as a partner or as an employee is dependent upon the type of benefit being provided.
If you have questions on this, or any other tax or business related issue, please contact the experts at Zinner & Co.
