102(a) \u2013 Gross income does not include the value of property acquired by gift, bequest, devise, or inheritance<\/p>\n
Generally all “gifts” from employer to employee must be counted as gross income<\/p>\n
Exceptions:<\/p>\n
Cases:<\/p>\n
Duberstein was given a Cadillac by the president of another company after Duberstein provided him with names of potential customers; this qualified as a gift<\/em><\/p>\n The beneficiary challenged the will and received money after a settlement; this money is not gross income because he received it based on his status as a beneficiary<\/em><\/p>\n Wolder’s client bequeathed stock to him in return for providing legal services; “A transfer in the form of a bequest was the method that the parties chose to compensate <\/strong>Mr. Wolder for his legal services, and that transfer is therefore subject to taxation”<\/em><\/p>\n \u00a0<\/em><\/p>\n 132(a)(1)&(2) \u2013 Certain Fringe Benefits<\/strong> \u00a0<\/strong><\/p>\n 132(c) \u2013 Qualified employee discount<\/strong><\/p>\n Review beginning of Chapter 4 for summary of 132(a) fringe benefits<\/p>\n \u00a0<\/em><\/p>\n 119 \u2013 Meals or lodging furnished for the convenience of the employer<\/strong><\/p>\n Section 119 grants an exclusion from gross income of lodging furnished to an employee if three conditions are met:<\/p>\n \u00a0<\/strong><\/p>\n Cases:<\/em><\/p>\n President of a funeral home and lived there; the funeral business requires someone to be in attendance 24 hours a day, the business phone also rang in his apartment; excludable from GI<\/em><\/p>\n \u00a0<\/em><\/p>\n Exception:<\/p>\n Section 74(c) \u2013 an award may qualify if it relates to length of service or to safety \u2013 must be at least 4 years<\/p>\n Case:<\/strong><\/em><\/p>\n <\/strong>Allen McDonell \u2013<\/em>sales manager went with his wife on a trip to Hawaii; he was a chaperone and the business sent him; not gross income<\/em><\/p>\nLyeth v. Hoey (1938)<\/em><\/h3>\n
Wolder v. Commissioner (1974)<\/em><\/h3>\n
Employee Benefits \u2013 132, 119<\/h1>\n
\nNondiscrimination rule 132(j)(1) \u2013 may be made available tax-free to officers, owners, or highly compensated employees only if the benefits are also provided on substantially equal terms to other employees<\/p>\n\n
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Herbert G. Hatt<\/em><\/h3>\n
Prizes and Awards \u2013 74<\/h1>\n
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