Thursday, January 19, 2012

IRS Ruling Clarifies Deductibility of Employer-Provided Meals

Meals provided by an airline to its crew members while they are working on a plane are only 50 percent deductible by the airline even though the meals may legally be totally excluded from the employees’ income. The meals in this case are excludable not because they are de minimis fringe benefits but because they are furnished for the convenience of the employer. The code limits the deduction for food and beverages to 50 percent unless an exception applies.

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