Tim is the vice president of western operations for Maroon Oil Company and is stationed in San Francisco. He is required to live in an employer-owned home, which is three blocks from his company office. The company-provided home is equipped with high-speed internet access and several telephone lines. Tim receives telephone calls and e-mails that require immediate attention any time of day or night, as the company's business is spread all over the world. A full-time administrative assistant resides in the house to assist Tim with urgent business matters. Tim often uses the home for entertaining customers, suppliers, and employees. The fair market value of comparable housing is $9,000 per month. Tim is also provided with free parking at his company's office. The value of the parking is $370 per month.

Question Content Area

a.Complete the statements below regarding Tim's exclusion issue and what he must include in his gross income for 2023.

Section 119 excludes from income the value of meals and lodging provided to the employee and the employee's spouse and dependents under the following conditions:

• The meals and/or lodging are furnished by the employerfor the convenience of.

the employeethe employerboth the employee and employerthe employer

at the employee's homeon the employer's business premisesat either work or employee's homeon the employer's business premises

• In the case of lodging, the employeeto accept the lodging as a condition of employment.

can chooseis requiredis required

• Tim could argue that this house is an extension ofbecause of the extensive business activities conducted in the home.

the employer's officehis employment contractthe employer's office

Section 119 excludes from income the value of meals and lodging provided to the employee and the employee's spouse and dependents under certain circumstances. The convenience of the employer test is intended to focus on the employer's motivation for furnishing the meals and lodging rather than on the benefits received by the employee.

Question Content Area

b. The amount associated with the free parking that Tim must include in his gross income per month is $fill in the blank 98929efc7ffcfd3_1.