106 T.C. No. 19
UNITED STATES TAX COURT
BOYD GAMING CORPORATION, f.k.a. THE BOYD GROUP
AND SUBSIDIARIES, Petitioners v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
CALIFORNIA HOTEL AND CASINO AND SUBSIDIARIES, Petitioners
v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket Nos. 3433-95, 3434-95. Filed May 22, 1996.
Ps provided “free” meals to their employees in
private cafeterias located on their business premises.
R determined that sec. 274(n)(1), I.R.C., limits Ps’
deduction for the cost of these meals. R moves for
partial summary judgment in her favor. Ps object to
R’s motion, arguing that they may deduct 100 percent of
their cost under the de minimis fringe benefit
exception of sec. 274(n)(2)(B), I.R.C., and that the
applicability of this exception is a factual
determination that has yet to be made. Ps also move
for partial summary judgment in their favor, arguing
that they may deduct 100 percent of the meals’ cost
under the bona fide sale exception of sec. 274(e)(8),
I.R.C. Held: Ps may deduct 100 percent of the meals’
cost if they are within the de minimis fringe benefit
exception of sec. 274(n)(2)(B), I.R.C., and whether
they are within this exception is an unanswered
question of fact. Held, further: Ps’ provision of the
meals is not within sec. 274(e)(8), I.R.C.
Page: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011