Question

Which of the following, if any, is subject to an overall limitation on meals?

a. Meals provided to employees during a training event or retreat at an off-site location.
b. Meals provided to employees during a business meeting.
c .A Fourth of July company picnic for employees.
d. Meals provided at cost to employees at a cafeteria funded by the employer.
e. All of these choices are correct.

Answer 1

D. Meals provided at cost to employees at a cafeteria funded by the employer.

Step-by-step explanation:

It is explained as stated in the code of conducts of some of the firms in the US for this form of feeding towards the employee. It is critical that proper records are maintained to substantiate all meals and entertainment deductions. Proper documentation includes a record of the time and place, business purpose and the relationship to the party being entertained.

Treasury rules, unless expressly stated otherwise, any US tax advice contained in this communication is not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.