Al flies for AAA Airlines. AAA provides its employees with several fringe benefits. Al and his family
Question:
Al flies for AAA Airlines. AAA provides its employees with several fringe benefits. Al and his family are allowed to fly on a space-available basis on AAA Airline. Tickets used by Al and his family during the year are worth $2,000. AAA paid for a subscription to two magazines published for pilots. The subscriptions totaled $80. The airline paid for Al’s meals and lodging while he was away from home overnight in connection with his job. Such meals and lodging cost AAA $10,000. Although Al could not eat while flying, he was allowed to drink coffee provided by the airline. The coffee was worth about $50. AAA provided Al with free parking, which is valued at $100 per month. The airline treated Al and his family to a one-week all-expenses-paid vacation at a resort near his home. This benefit was awarded because of Al’s outstanding safety record. The value of the vacation was $2,300. Which of these benefits are taxable to Al?
Step by Step Answer:
Federal Taxation 2018 Comprehensive
ISBN: 9780134532387
31st Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson