Page 31 - Virtual Currencies

8:29 - 7-Feb-2023
Page 8 of 43
Fileid: … tions/p525/2022/a/xml/cycle08/source
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
charitable contribution for naming a chari- spouse, or any of your dependents by, or on be- Retirement Planning Services
table organization as the beneficiary of half of, the institution or center for use as a
your policy.) home. The lodging must be located on or near a If your employer has a qualified retirement plan,
4. The plan existed on January 1, 1984, and: campus of the educational institution or aca- qualified retirement planning services provided
to you (and your spouse) by your employer
demic health center.
a. You retired before January 2, 1984, aren't included in your income. Qualified serv-
and were covered by the plan when Adequate rent. The amount of rent you ices include retirement planning advice, infor-
you retired; or pay for the year for qualified campus lodging is mation about your employer's retirement plan,
considered adequate if it's at least equal to the
b. You reached age 55 before January lesser of: and information about how the plan may fit into
your overall individual retirement income plan.
2, 1984, and were employed by the • 5% of the appraised value of the lodging, You can't exclude the value of any tax prepara-
employer or its predecessor in 1983. or tion, accounting, legal, or brokerage services
• The average of rentals paid by individuals provided by your employer. Also, see Financial
Entire cost taxed. You’re taxed on the entire (other than employees or students) for Counseling Fees, earlier.
cost of group-term life insurance if either of the comparable lodging held for rent by the ed-
following circumstances applies. ucational institution.
• The insurance is provided by your em- Transportation
ployer through a qualified employees' trust, If the amount you pay is less than the lesser of
such as a pension trust or a qualified annu- these amounts, you must include the difference If your employer provides you with a qualified
ity plan. in your income. transportation fringe benefit, it can be excluded
• You’re a key employee and your employ- The lodging must be appraised by an inde- from your income, up to certain limits. A quali-
er's plan discriminates in favor of key em- pendent appraiser and the appraisal must be fied transportation fringe benefit is:
ployees. reviewed on an annual basis. • Transportation in a commuter highway ve-
hicle (such as a van) between your home
Example 4. You are a sociology professor and work place,
Meals and Lodging for State University and rent a home from the • A transit pass, or
university that is qualified campus lodging. The • Qualified parking.
You don't include in your income the value of house is appraised at $200,000. The average
meals and lodging provided to you and your rent paid for comparable university lodging by Cash reimbursement by your employer for
family by your employer at no charge if the fol- persons other than employees or students is these expenses under a bona fide reimburse-
lowing conditions are met. $14,000 a year. You pay an annual rent of ment arrangement is also excludable. However,
1. The meals are: $11,000. You don’t include in your income any cash reimbursement for a transit pass is exclud-
rental value because the rent you pay equals at
a. Furnished on the business premises least 5% of the appraised value of the house able only if a voucher or similar item that can be
exchanged only for a transit pass isn't readily
of your employer, and (5% × $200,000 = $10,000). If you paid annual available for direct distribution to you.
b. Furnished for the convenience of your rent of only $8,000, you would have to include
employer. $2,000 in your income ($10,000 − $8,000). Exclusion limit. The exclusion for commuter
2. The lodging is: Moving Expense Reimbursements vehicle transportation and transit pass fringe
benefits can't be more than $280 a month.
a. Furnished on the business premises The exclusion for the qualified parking fringe
of your employer, For tax years 2018 through 2025, reimburse- benefit can't be more than $280 a month.
b. Furnished for the convenience of your ments for certain moving expenses are no lon- If the benefits have a value that is more than
employer, and ger excluded from the gross income of nonmili- these limits, the excess must be included in
tary taxpayers.
your income.
c. A condition of your employment. (You
must accept it in order to be able to No-Additional-Cost Services Commuter highway vehicle. This is a high-
properly perform your duties.) way vehicle that seats at least six adults (not in-
The value of services you receive from your em- cluding the driver). At least 80% of the vehicle's
You also don't include in your income the ployer for free, at cost, or for a reduced price mileage must reasonably be expected to be:
value of meals or meal money that qualifies as a isn't included in your income if your employer: • For transporting employees between their
minimal fringe benefit. See De Minimis (Mini- • Offers the same service for sale to custom- homes and workplace, and
mal) Benefits, earlier. ers in the ordinary course of the line of • On trips during which employees occupy at
business in which you work, and least half of the vehicle's adult seating ca-
Faculty lodging. If you're an employee of an • Doesn’t have a substantial additional cost pacity (not including the driver).
educational institution or an academic health (including any sales income given up) to
center and you're provided with lodging that provide you with the service (regardless of Transit pass. This is any pass, token, fare-
doesn't meet the three conditions given earlier, what you paid for the service). card, voucher, or similar item entitling a person
you may still not have to include the value of the to ride mass transit (whether public or private)
lodging in income. However, the lodging must In most cases, no-additional-cost services free or at a reduced rate or to ride in a com-
be qualified campus lodging, and you must pay are excess capacity services, such as airline, muter highway vehicle operated by a person in
an Adequate rent. bus, or train tickets; hotel rooms; and telephone the business of transporting persons for com-
Academic health center. This is an organ- services. pensation.
ization that meets the following conditions. Qualified parking. This is parking provided to
• Its principal purpose or function is to pro- Example 5. You're employed as a flight at- an employee at or near the employer's place of
vide medical or hospital care or medical tendant for a company that owns both an airline business. It also includes parking provided on
education or research. and a hotel chain. Your employer allows you to or near a location from which the employee
• It receives payments for graduate medical take personal flights (if there is an unoccupied commutes to work by mass transit, in a com-
education under the Social Security Act. seat) and stay in any one of their hotels (if there muter highway vehicle, or by car pool. It doesn't
• One of its principal purposes or functions is is an unoccupied room) at no cost to you. The include parking at or near the employee's
to provide and teach basic and clinical value of the personal flight isn't included in your home.
medical science and research using its income. However, the value of the hotel room is
own faculty. included in your income because you don't
work in the hotel business.
Qualified campus lodging. Qualified cam-
pus lodging is lodging furnished to you, your
Page 8 Publication 525 (2022)