I have a client in Massachusetts that is starting a private school for 1st and 2nd graders. She is going to be the head administrator. She has hired two teachers which she will pay a salary. She is charging tuition for each student except her own two children. I was thinking that the value of the tuition for her two children should be considered income for her business. But, I am unsure if it should actually be treated as a tax free benefit. She is not being paid a salary. Any thoughts?