A Department Store Sold a Stereo to an Employee for $300,even
A department store sold a stereo to an employee for $300,even though the retail price was $500.The gross profit percentage is 40%.Such discounts are available to all employees.How much income should be recognized by the employee from these transactions?
Michael is an employee of StayHere Hotels,Inc.in Washington,DC.On his vacation,Michael travels to San Francisco and stays at a StayHere Hotel for six nights free of charge.The regular rate for a hotel room at StayHere in San Francisco is $300 a night.His ability to stay in the hotel without charge is based on the availability of empty rooms.How much income must Michael report due to the use of the San Francisco hotel room?
Benefits covered by Section 132 which may be excluded from an employee's gross income do not include
A)employee's use of an employer-owned health club.
B)membership fees in professional organizations.
C)employer-provided vehicle for personal use.
D)hotel employee's use of a vacant hotel room.
All of the following fringe benefits paid for by the employer may be excluded from an employee's gross income except
A)discounts on services of 25 percent.
B)subscriptions to professional publications.
C)recreational facilities on employer's premises.
D)unused airline seats for airline employees where the employee is required to fly "standby."