Tax-Free Employee Benefits Part 1: No-Cost Services and Employee Discounts
#17

Tax-Free Employee Benefits Part 1: No-Cost Services and Employee Discounts

Section 132 allows employers to provide certain fringe benefits tax-free, but only if they follow specific rules. Jeremy breaks down no additional cost services, like airline employees flying on empty seats, and qualified employee discounts, explaining the 20% cap on services and the gross profit limitation on products. He covers the critical "line of business" requirement, who qualifies as an employee beyond current workers, and why highly compensated employees face stricter rules.

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