A new decision made in favor of a hallowed professional hockey team may lead to tax breaks for employers of all stripes.
Strategy: Furnish meals to employees when it suits your business purposes. If certain requirements are met, the meals are tax free to the employees as aand deductible by your company.
Generally, the meals must be furnished on-site to qualify for this double-dip. But the new decision involving the Boston Bruins, one of the NHL’s original six franchises, shows that off-site meals may be eligible under certain conditions. (Jacobs, 148 TC No. 4, 6/26/17)
Here’s the whole story: Food and beverages provided by a business are tax free to employees if they are furnished for the convenience of the employer and they are served on the business premises. However, meals are furnished for the employer’s “convenience” only if there’s a substantial noncompensatory business purpose. For instance, this may o...(register to read more)