Every year, Teal Corporation gives each employee a turkey and a bottle of wine during the December holiday season.These gifts are subject to the 50% limitation.

Question

Quizplus · Accepted Answer

The gifts of a turkey and a bottle of wine given by Teal Corporation to each employee during the December holiday season are considered de minimis fringe benefits, which are excluded from the employee's income and are not subject to the 50% limitation that applies to meals and entertainment expenses.

Every Year, Teal Corporation Gives Each Employee a Turkey and a Bottle