Boyd Gaming Corporation, f.k.a. The Boyd Group and Subsidiaries - Page 3

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          petitioners’ notice of objection, and she objected to                       
          petitioners’ cross-motion.4                                                 
               We hold that petitioners may deduct 100 percent of the cost            
          of the food and beverages provided to their employees, if the               
          food and beverages are within the de minimis fringe benefit                 
          exception of section 274(n)(2)(B).  Whether petitioners are                 
          within this exception is a factual determination that is yet to             
          be made.  We also hold that petitioners’ provision of the food              
          and beverages is not within section 274(e)(8).                              
               Unless otherwise stated, section references are to the                 
          Internal Revenue Code in effect for the years in issue.  Rule               
          references are to the Tax Court Rules of Practice and Procedure.            
          We refer to Boyd Gaming Corp., f.k.a. the Boyd Group and                    
          Subsidiaries, and California Hotel and Casino and Subsidiaries as           
          Boyd and CHC, respectively.                                                 
                                     Background5                                      
               Boyd and CHC are Nevada corporations whose principal offices           
          were in Las Vegas, Nevada, when they petitioned the Court.  For             
          its taxable year ended June 30, 1988 (the 1987 taxable year), CHC           
          was the common parent of an affiliated group of corporations that           

          (...continued)                                                              
          one of their senior vice presidents.                                        
          4 Respondent’s objection is unaccompanied by supporting                     
          affidavits.                                                                 
          5 The “facts” presented in this Opinion are stated solely                   
          for purposes of deciding the motion and are not findings of fact            
          for this case.  Fed. R. Civ. P. 52(a); Sundstrand Corp. v.                  
          Commissioner, 98 T.C. 518, 520 (1992), affd. 17 F.3d 965 (7th               
          Cir. 1994).                                                                 




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