Taxpayer contributes $4,000 in cash to C-Corporation. Before the company has generated any income, earnings or revenue, Taxpayer receives $2,000 back from the corporation. Taxpayer should treat the $2,000 he received back from the corporation as: a. Dividend b. 1231 Gain c. Non-taxable return of capital d. Capital Gain.

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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.