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Case Study: Lcda

256 Words2 Pages
1. Runyan should exclude the value of the meals provided by at LCDA’s commissary because the commissary is at LCDA’s offices and it is convenient for LCDA to provide these meals because the employees will have to spend an unreasonable amount of time finding and eating meals by driving to Austin. 2. Runyan must include the reimbursements for groceries in gross income because they do not qualify as an exclusion. Also, he will only be able to deduct the reimbursements if he either “slept or rested away from home.” a. Because the facts do not state that he buys the groceries from LCDA and the groceries that he purchases are not for the convenience of his employer, the IRS would likely follow the decision in Tougher and determine that groceries
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