What conditions must be met if an employee is to exclude meals and lodging furni

Question

What conditions must be met if an employee is to exclude meals and lodging furnished by an employer?

A.

For meals to be excluded from an employee's gross income, they must be furnished on the premises of the employer and for the convenience of the employee. For lodging to be excluded from an employee's gross income it must meet the same tests as meals and the employee must be required to accept the lodging as a condition of employment.

B.

For meals to be excluded from an employee's gross income, they must be furnished on the premises of the employer and for the sole purpose of increasing business with potential new clients. Lodging cannot be excluded from an employee's gross income.                                         

C.

For meals to be excluded from an employee's gross income, they must be furnished on the premises of the employer and for the convenience of the employer. For lodging to be excluded from an employee's gross income it must meet the same tests as meals and the employee must be required to accept the lodging as a condition of employment.

D.

For meals to be excluded from an employee's gross income, they must be for the sole purpose of increasing business with potential new clients. For lodging to be excluded from an employee's gross income it must meet the same tests as meals.

Explanation / Answer

For meals to be excluded from an employee's gross income, they must be furnished on the premises of the employer and for the convenience of the employer. For lodging to be excluded from an employee's gross income it must meet the same tests as meals and the employee must be required to accept the lodging as a condition of employment. Option C is correct

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