- 2 - Thomas P. Marinis, Jr. and J. Barclay Collins III, for petitioners. Paul L. Dixon, for respondent. OPINION LARO, Judge: These consolidated cases are before the Court on cross-motions for partial summary judgment.1 Respondent moves for partial summary judgment in her favor, arguing that section 274(n)(1) limits petitioners’ deductions for the cost of “free” food and beverages that they provided to their employees on petitioners’ business premises.2 Petitioners object to respondent’s motion, arguing that a genuine issue of fact exists as to the applicability of an exception to section 274(n)(1); namely, whether the food and beverages are a de minimis fringe benefit under section 274(n)(2)(B). Petitioners also move for partial summary judgment in their favor, arguing that section 274(n)(1) does not apply because petitioners "sold * * * [the food and beverages to their employees] in a bona fide transaction for an adequate [and full] consideration in money or money's worth".3 See sec. 274(e)(8), (n)(2)(A). Respondent replied to 1 On Nov. 7, 1995, the Court granted the unopposed motion of respondent to consolidate the two cases for purposes of trial, briefing, and opinion. 2 Respondent supports her motion with only the pleadings. 3 Petitioners’ cross-motion is supported by the affidavit of (continued...)Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
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