Omega Corporation has two shareholders, John and Jeff. Each owns 50% of Omega Jeff is also an employee of Omega. John is not an employee of Omega Jeff buys office supplies for Omega Corporation and Omega Corporation reimburses Jeff for the cost. John pays Omega's real estate tax bill and does not receive reimbursement

A) i Is Omega entitled to a tax deduction for the cost of office supplies?

Yes or No ii If no, how does Omega treat Jeff's purchase?

iii Does Jeff have income with respect to Omega's reimbursement?

Yes or No

B)

i Is Omega entitled to a deduction for the real estate taxes John paid Yes or No on its behalf?

ii How does John treat his payment of real estate taxes on behalf of Omega Corporation?