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The IRS values stuff like this at fair market value, not wholesale cost. The benefit to the employee is a meal that they would otherwise have to buy at retail.
by ams6110 8y ago
The IRS values stuff like this at fair market value, not wholesale cost. The benefit to the employee is a meal that they would otherwise have to buy at retail. So that's how it's valued. If they were to enforce it.
- jacquesm 8y agoThe benefit to the employee is that he does not have to bring it from home. Why would an employee automatically go out and buy lunch when a much more practical and cheaper alternative is available?
- ams6110 8y agoBecause preparing lunch at home and bringing it to work is kind of a nuisance? I eat lunch out almost every day and I don't make anything close to Silicon Valley income. Because I don't want to bother with preparing a lunch at home and taking it to work. And I like to get out of the office for an hour. Doesn't really matter why the employee code to accept it, the point is the employee is accepting something of value, and that value is determined based on prevailing market prices for similar things.