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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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