Discuss APA CPP-Remote Exam Topic 1 Question 74

ER-sponsored athletic facilities may be nontaxable fringe benefits if the:

AER requires substantiation of the amount, time, and business purpose of the facilities' use

BER incurs no substantial additional cost, except labor, to provide the facilities

Cfacilities are on the ER's premises

Dfacilities qualify as a de minimis fringe

Suggested Answer: C

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25 comments · newest first

Margart 9 months ago

D is interesting too, but I feel like it’s less common.

Jerilyn 9 months ago

I agree with A and C, those make the most sense!

Silva 9 months ago

Wait, are you sure about B? No substantial costs seems too good to be true.

Salley 10 months ago

Definitely A, substantiation is key!

Luz 10 months ago

I think it's C, the facilities need to be on the ER's premises.

Carmelina 11 months ago

I vaguely remember that substantiation is important, but I’m not confident if that applies to option A or if it’s more about the facilities being on-site.

Paris 11 months ago

I feel like we had a practice question that mentioned de minimis fringe benefits, so option D could be relevant here, but I can't recall the specifics.

Dahlia 11 months ago

I'm not entirely sure, but I remember something about the employer needing to show they don't incur substantial additional costs. That might relate to option B?

Timothy 11 months ago

I think option C sounds familiar because we discussed how facilities on the employer's premises can be treated differently for tax purposes.

Alayna 11 months ago

I'm a bit confused by the wording of the question. I'll need to re-read it a few times to make sure I understand what they're asking.

Laticia 12 months ago

I'm confident I know the answer to this one. It's all about the ER's cost and the business purpose of the facilities.

Lisbeth 12 months ago

Okay, let me break this down step-by-step. The key is understanding the requirements for ER-sponsored athletic facilities to be nontaxable.

Markus 12 months ago

Hmm, I'm not sure about the details of nontaxable fringe benefits. I'll have to think this through carefully.

Corinne 1 year ago

This question seems straightforward, I think I can handle it.

Shakira 1 year ago

Option C seems the most logical to me. If the facilities are on the ER's premises, then they should be nontaxable fringe benefits.

Twana 1 year ago

Haha, the real question is whether the ER provides free donuts along with the athletic facilities. That's the true test of a nontaxable fringe benefit!

Bobbye 9 months ago

↳ replying to Twana

I’d choose the gym over donuts any day!

Flo 10 months ago

↳ replying to Twana

But are they really a fringe benefit?

Elouise 10 months ago

↳ replying to Twana

Free donuts would definitely sweeten the deal!

Verlene 10 months ago

↳ replying to Twana

Both would be ideal! Why not have both?

Goldie 1 year ago

I think the answer is D. If the facilities qualify as a de minimis fringe, then they can be nontaxable.

Val 1 year ago

The correct answer is B. If the employer incurs no substantial additional cost, except labor, to provide the facilities, then the ER-sponsored athletic facilities may be nontaxable fringe benefits.

Celestina 1 year ago

↳ replying to Val

B) ER incurs no substantial additional cost, except labor, to provide the facilities

Helaine 1 year ago

↳ replying to Val

A) ER requires substantiation of the amount, time, and business purpose of the facilities' use

Malinda 1 year ago

I think the answer is B

APA CPP-Remote Exam - Topic 1 Question 74 Discussion