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J.K. Lasser's Your Income Tax 2013: For Preparing Your 2012 Tax Return
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J.K. Lasser's Your Income Tax 2013: For Preparing Your 2012 Tax Return

by J.K. Lasser Institute
October 2012
Beginner
784 pages
45h 24m
English
Wiley
Content preview from J.K. Lasser's Your Income Tax 2013: For Preparing Your 2012 Tax Return

3.10 De Minimis Fringe Benefits

Small benefits that would be administratively impractical to tax are considered tax-free de minimis (minor) fringe benefits. Examples are personal use of an employer-provided cell phone (see below), occasional meal money or local transportation fares given to employees working overtime, employer-provided coffee, doughnuts, or soft drinks, personal use of company copying machines, company parties, or tickets for the theater or sporting events.

Personal use of employer-provided cell phone.

If your employer gives you a phone for substantial business reasons, the value of the phone is a tax-free working condition fringe benefit (3.9). In such a case, your personal use of the phone is tax free as a de minimis benefit.

Company eating facility.

The value of meals provided to employees on workdays at a subsidized eating facility is a tax-free de minimis fringe benefit if the facility is located on or near the business premises and the annual revenue from meal charges equals or exceeds the facility’s direct operating costs. Revenue is treated as equal to operating costs for meals that are tax-free to employees under the employer convenience test (3.13).

Highly compensated employees or owners with special access to executive dining rooms may not exclude the value of their meals as a de minimis fringe benefit; however, the meals may be tax free if meals must be taken on company premises for business reasons (3.13).

Commuting under unsafe circumstances.

If you ...

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