5 ms·

That's taxable income then, no?

by idbehold 8y ago

throwaway426079 8y ago
Even if it is, it's just a few pennies per day.
- acchow 8y ago
  No, if your employer is giving you $10k worth of meals (their cost to produce them) and charging you $100 for it, you are taxable on the $9,900 benefit.
  - ironjunkie 8y ago
    I don't think it works like that. Do employees today get taxed on the value of the free food ? Why would that be different if it costs 1$ , and how do you define the value of the free food anyways ?
    - jschwartzi 8y ago
      It's technically compensation, so why wouldn't it be taxable?
      - ironjunkie 8y ago
        Do you get taxed on the free coke you get in the break room ? It just doesn't seem to work like that. It would also require to put a $ amount on the price of the "free" meal. Which would not make it free anymore.
  - npongratz 8y ago
    So if I buy a product for $100, that cost a company $200 to produce, I am liable for a $100 taxable benefit? Now I'm _definitely_ staying away from all those Black Friday and BOGO sales.
    - dragonwriter 8y ago
      The grandparents comment is specifically true of employment fringe benefits, and not true of sales to the general public, though meals may be excluded if they meet the rest of being provided for the emplkyer’s convenience. https://www.nolo.com/legal-encyclopedia/what-fringe-benefits-taxable.html https://www.nolo.com/legal-encyclopedia/what-fringe-benefits... http://www.irs.gov/pub/irs-pdf/p15b.pdf http://www.irs.gov/pub/irs-pdf/p15b.pdf
jimmywanger 8y ago
Sure. In the highest income bracket that's half a penny per meal out of your paycheck. In fact, you could just add a stipend to your paycheck, subtract a "food cost", and the food isn't free anymore.
dragonwriter 8y ago
Yes, the penny-per-meal charge would be a tiny amount of income which, presuming deductible business expenses did not increase to absorb it, would be subject to corporate income tax (which is really a retained profits tax.) None of the companies involved are even going to notice it.
- xienze 8y ago
  No, it’s the value of the free meals that’s considered taxable income. IIRC there was already a controversy about this a couple years ago. Employees getting the equivalent of what, $20 in free food every day? That adds up to real money.
  - dragonwriter 8y ago
    The decision to charge a penny by the company doesn't change that in any meaningful way, AFAICT, so it may be a tax issue for employees, but it doesn't seem relevant to the proposal that was being discussed.
mnm1 8y ago
If food is taxed there, then yes. I think Google, FB, etc. can afford it. They can afford to give out free meals after all.

That's taxable income then, no?

throwaway426079 8y ago

Even if it is, it's just a few pennies per day.

acchow 8y ago
No, if your employer is giving you $10k worth of meals (their cost to produce them) and charging you $100 for it, you are taxable on the $9,900 benefit.
- ironjunkie 8y ago
  I don't think it works like that. Do employees today get taxed on the value of the free food ? Why would that be different if it costs 1$ , and how do you define the value of the free food anyways ?
  - jschwartzi 8y ago
    It's technically compensation, so why wouldn't it be taxable?
    - ironjunkie 8y ago
      Do you get taxed on the free coke you get in the break room ? It just doesn't seem to work like that. It would also require to put a $ amount on the price of the "free" meal. Which would not make it free anymore.
- npongratz 8y ago
  So if I buy a product for $100, that cost a company $200 to produce, I am liable for a $100 taxable benefit? Now I'm _definitely_ staying away from all those Black Friday and BOGO sales.
  - dragonwriter 8y ago
    The grandparents comment is specifically true of employment fringe benefits, and not true of sales to the general public, though meals may be excluded if they meet the rest of being provided for the emplkyer’s convenience. https://www.nolo.com/legal-encyclopedia/what-fringe-benefits-taxable.html https://www.nolo.com/legal-encyclopedia/what-fringe-benefits... http://www.irs.gov/pub/irs-pdf/p15b.pdf http://www.irs.gov/pub/irs-pdf/p15b.pdf

jimmywanger 8y ago

Sure. In the highest income bracket that's half a penny per meal out of your paycheck. In fact, you could just add a stipend to your paycheck, subtract a "food cost", and the food isn't free anymore.

dragonwriter 8y ago

Yes, the penny-per-meal charge would be a tiny amount of income which, presuming deductible business expenses did not increase to absorb it, would be subject to corporate income tax (which is really a retained profits tax.) None of the companies involved are even going to notice it.

xienze 8y ago
No, it’s the value of the free meals that’s considered taxable income. IIRC there was already a controversy about this a couple years ago. Employees getting the equivalent of what, $20 in free food every day? That adds up to real money.
- dragonwriter 8y ago
  The decision to charge a penny by the company doesn't change that in any meaningful way, AFAICT, so it may be a tax issue for employees, but it doesn't seem relevant to the proposal that was being discussed.

mnm1 8y ago

If food is taxed there, then yes. I think Google, FB, etc. can afford it. They can afford to give out free meals after all.