Final answer:
For shareholders who own more than 2% of an S corporation's stock, de minimis fringes are typically non-taxable, while dependent care assistance programs are generally taxable. Education assistance programs may be non-taxable with special rules. Shareholders should consult with a tax advisor for specifics.
Step-by-step explanation:
Non-Taxable Fringe Benefits for >2% Shareholders
Understanding the categorization of fringe benefits and their tax implications for shareholders is important in business. For shareholders who own more than 2% of an S corporation's stock, certain fringe benefits are taxable. Among the options provided:
Dependent care assistance programs are generally considered a taxable fringe benefit for >2% shareholders, not non-taxable.
Education assistance programs can potentially be non-taxable benefits; however, special rules apply to shareholders who own more than 2% of the corporation's stock.
De minimis fringes, such as the use of the company copier or occasional personal use of company-owned devices, are typically non-taxable to all employees, including >2% shareholders.
It's crucial for >2% shareholders to consult with a tax advisor to understand the specifics as taxation can vary depending on the structure of the fringe benefit and the IRS regulations at the time.