Federal Income Tax (Class Notes)

Front 1

Special rules for fringe benefits
IRC §132(j)

Back 1

(1) Exclusions under (a)(1) and (2) apply to officers, etc. (See next card.)

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(3) Qualifed autombile demonstration use shall be treated as working condition fringe under (a)(3).

(4) GI shall not include value of on-premises athletic facility provide by Er to Ee.

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(6) "Highly compensated employee" means §414(q).

(7) Air cargo and passenger transportation are the same thing.

Front 2

Highly compensated individuals
IRC §132(j)(1)

Back 2

No-additional cost service and the qualifed employee discount provisions SHALL apply with respect to highly compensated employees ONLY IF:

(1) Such fringe benefit is available on substantially the same terms to each member of a group of employees which is defined under a reasonable classification by the employer; and

(2) Does not discriminate in favor of highly compensated employees.

Front 3

Qualifed employee discount
IRC §132(c)

Back 3

Any employee discount with respect to "qualifed property or services" to the extend such discount does NOT exceed--

(A) For property: gross profit %age of the price at which the property is being offered; or

(b) For services: 20% of the price at which the services are being offered by the employer to customers.

Front 4

Gross profit percentage
IRC §132(c)(2)

Back 4

Aggregate Sale Price -- Agregate Cost of Property
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Agregate Sale Price

Front 5

Qualifed property or services
IRC §132(c)(4)

Back 5

Property or sercies which are offered for sale to customers in the ordinary course of the line of business of the employer in which the employee is performing services.