Mind Tap - Cengage Learning 2 PDF

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Chapter 2: Gross Income and Exclusions: 2-5d No-Additional-Cost Services Book Title: Income Tax Fundamentals, 2021 Printed By: rosa chavez ([email protected]) © 2021 Cengage Learning, Inc., Cengage Learning, Inc.

2-5d No-Additional-Cost Services This category of fringe benefits includes services that are provided to employees and their families at little or no additional cost to the employer, and which would otherwise have remained unused. An airline employee who is allowed to fly at no cost on a standby basis is an example. The value of the airfare may be excluded from the employee’s gross income. Employees are only allowed to receive tax-free services in the major line of business in which they are employed. For example, if an airline company also owns a rental car agency, the employees working in the airline division would not be entitled to the tax-free use of rental cars. Chapter 2: Gross Income and Exclusions: 2-5d No-Additional-Cost Services Book Title: Income Tax Fundamentals, 2021 Printed By: rosa chavez ([email protected]) © 2021 Cengage Learning, Inc., Cengage Learning, Inc. © 2021 Cengage Learning Inc. All rights reserved. No part of this work may by reproduced or used in any form or by any means - graphic, electronic, or mechanical, or in any other manner - without the written permission of the copyright holder....