Chapter 5 Notes

Chapter 5 Notes - considered discrimination parking is not...

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Scholarship for room and board is excluded Workers comp, reimbursement of medical expenses, damages for physical personal  injuries are all excludable; look up medical expenses!!!! Employee must include value of free item in their gross income i.e. free newspaper Taxed on FMV when given the choice between a free service or stipend Advances are included in AGI when you are a cash basis tax payer; insurance and  disability are excluded An executive must pay tax on a privilege they receive such as a discount otherwise it is 
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Unformatted text preview: considered discrimination; parking is not included up to FMV of $230 a month • Section 119: When meals are provided to employee on employers premises for convenience of the employer , it is excludable from AGI • Gain on municipal bond is taxable, interest is not; all municipal bonds are exempt from federal tax, but not state tax if you live in another state • 1,000 @ 50 = 50,000*20% = 10,000...
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