Assume that Sean does not expect to have any investment income in the foreseeable future. Should Sean treat the distribution as a qualified dividend (subject to a 15% tax rate) or classify it as net investment income?

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Q: 3) Ron is single and in 2020 has a taxable income of $480,000. This taxable income includes the…

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Q: net income for tax purpose

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A: Following is the answer to the question.

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Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.