APA Exam CPP-Remote Topic 10 Question 57 Discussion

Actual exam question for APA's CPP-Remote exam

Question #: 57
Topic #: 10

[All CPP-Remote Questions]

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

Show Suggested Answer

Suggested Answer: C

by Pamella at Sep 15, 2024, 12:24 PM

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Lawana

7 months ago

A is the way to go. The employer needs to require substantiation of the business purpose and usage of the facilities.

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Fabiola

6 months ago

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

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Kattie

6 months ago

That makes sense. It's important for the employer to have documentation of how the facilities are being used.

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Azzie

6 months ago

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

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Suzan

7 months ago

I'm not sure, but I think it could also be D, as long as the facilities qualify as a de minimis fringe.

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Karl

7 months ago

This question is a real workout for my brain! I'm going to have to do some extra stretching after this one.

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Jarvis

7 months ago

I agree with Kimberely, because it makes sense that there should be no substantial additional cost.

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Rory

7 months ago

I'm going with B. As long as the employer doesn't incur any substantial additional costs, the facilities should be considered nontaxable.

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Alida

6 months ago

True, as long as it meets the criteria for being a de minimis fringe benefit.

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Abel

6 months ago

I think that's important too, but ultimately if there are no substantial additional costs, it should be nontaxable.

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Lezlie

6 months ago

But what about the requirement for substantiation of the amount, time, and business purpose?

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Carma

7 months ago

I agree, as long as there are no substantial additional costs, it should be nontaxable.

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Kimberely

7 months ago

I think the answer is B.

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Antonio

7 months ago

C seems like the obvious choice to me. If the facilities are on the employer's premises, they should be considered a nontaxable fringe benefit.

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I think the correct answer is D. The facilities must qualify as a de minimis fringe benefit, which means they are of such small value that accounting for them would be unreasonable or administratively impracticable.

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Chandra

7 months ago

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

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Marya

7 months ago

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

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APA Exam CPP-Remote Topic 10 Question 57 Discussion

Contribute your Thoughts:

Lawana

Fabiola

Kattie

Azzie

Suzan

Karl

Jarvis

Rory

Alida

Abel

Lezlie

Carma

Kimberely

Antonio

Lorean

Chandra

Marya