Mindy, a hotel manager, is required to reside in the hotel she manages as a condition of her employment. Mindy's hotel residence is provided free-of-charge because Mindy is on call 24 hours a day to handle hotel emergencies. The value of the hotel residence provided to Mindy is not taxable income.

Question

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According to the IRS, lodging provided to an employee on the business premises of his or her employer for the convenience of the employer is generally not taxable income. Mindy's situation falls under this category since her hotel residence is provided for her to respond to hotel emergencies.

Mindy, a Hotel Manager, Is Required to Reside in the Hotel