Question

Determine if the benefits are taxable or nontaxable. Use only one answer per question. Answers may be used more than once or not at all.

A. Taxable Fringe Benefit

B. Nontaxable Fringe Benefit

4. Personal use of a company jet.

5. Business use of a company car.

6. An airline offers free flights to pilots only.

7. Country club dues are paid by the employer for an employee.

8. You accept a new job in Tulsa and your employer reimburses you for moving expenses.

9. Dependent Care Assistance of $4,000 a year.

10. An employer gives retiring employees a $300 gold watch during a retirement party where they serve cake and toast the retiree with sparkling cider.

Answer 1

As per rules I am answering the first 4 subparts of the question

1: Personal use of a company jet.

taxable fringe benefit

(Since this is additional facility given to the employee, it is taxable)

2: Business use of a company car.

Non taxable fringe benefit

(Since this is a requirement for performing the duties and has to be given to the employees, it is not taxable)

3: An airline offers free flights to pilots only.

taxable fringe benefit

(Since this is additional facility given to the employee, it is taxable)

4: Country club dues are paid by the employer for an employee.

taxable fringe benefit

(Since this is additional facility given to the employee, it is taxable)