A below-market loan (e. g., from an employer to an employee) is a common example of a transaction that generates taxable imputed income.

a. True

b. False

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Business

Savannah Villa

14 September, 00:54

A below-market loan (e. g., from an employer to an employee) is a common example of a transaction that generates taxable imputed income.

a. True

b. False

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Lukas Orozco · Answer 1

This is true. With a below-market loan, the recipient has received a fringe benefit and would be considered to have earned imputed income. If the amount of the loan was over $50,000, then the recipient would have to claim this income on their next income tax statement as such and pay the appropriate taxes on it.

A below-market loan (e. g., from an employer to an employee) is a common example of a transaction that generates taxable imputed income.a. Trueb. False

A below-market loan (e. g., from an employer to an employee) is a common example of a transaction that generates taxable imputed income.

a. True

b. False