TaxGuyBill
Level 15
12-07-2019
08:54 AM
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For this scenario, I partially disagree with Susan.
This smells like a Discrimination in favor of Highly Compensated Employees situation. If that is the case, then it *IS* taxable to the officers and shareholders.
https://www.law.cornell.edu/uscode/text/26/125
But in direct answer to the question, yes, it should be deductible to the corporation. But it is quite possible that this situation is taxable to the officers and shareholders and/or is in violation of ERISA rules and/or is against ACA rules.
This smells like a Discrimination in favor of Highly Compensated Employees situation. If that is the case, then it *IS* taxable to the officers and shareholders.
https://www.law.cornell.edu/uscode/text/26/125
But in direct answer to the question, yes, it should be deductible to the corporation. But it is quite possible that this situation is taxable to the officers and shareholders and/or is in violation of ERISA rules and/or is against ACA rules.
