Question
a. Section 119 excludes from income the value of meals provided to the employees when: 1. When the meals are provided by the employer. 2.
a.
Section 119 excludes from income the value of meals provided to the employees when:
1. When the meals are provided by the employer.
2. When the meals are furnished on the employer's premises.
3 When the meals are furnished for the convenience of the employer.
Only item 1 is a valid condition | ||
Only item 2 is a valid condition | ||
Only item 3 is a valid condition | ||
All 3 items must be satisfied for meals to be excluded from gross income |
b.
On February 9, 2016, Harry sold stock with a cost of $12,000 to his sister Florine for $7,000, its fair market value. On July 30, 2021, Florine sold the same stock for $16,200 to a friend in a bona fide transaction. What is the proper treatment in 2021 for these transactions?
Neither Harry nor Florine has a recognized gain or loss.
| ||
Harry has a recognized loss of $5,000. | ||
Florine has a recognized gain of $4,200.
| ||
Florine has a recognized gain of $9,200. |
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