M, Inc., operates a funeral home out of a nineteenth-century mansion.M, Inc., requires R to be on call 24 hours and provides the second floor of the mansion as an apartment.Rent expense for comparable accommodations would amount to $24,000 per year.R has taxable income on this perquisite of

Question

Quizplus · Accepted Answer

The value of lodging provided to an employee is not taxable if it is for the convenience of the employer, on the employer's premises, and a condition of employment. Since R is required to be on call 24 hours and the lodging is provided on the employer's premises, it is not taxable.

M, Inc, Operates a Funeral Home Out of a Nineteenth-Century Mansion