Boyd Gaming Corporation, f.k.a. The Boyd Group and Subsidiaries - Page 2

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               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...)           




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