Whose income is it?

May 23, 2010 43 Replies
R

The 10% off is a rebate, and like discounts is a way to entice people to buy.

I'm thinking of the case when an owner who does not work in the restaurant eats there. Say someone owns a chain of fast food restaurants, or even just one fast food or fancy restaurant, but they just show up to get food, and don't normally work there. The free food is a perk for them, and is technically taxable income if they don't pay for it. If they pay for it and don't deduct it, then it's like any other customer, and it's not taxable income to them.

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S

For an ordinary employee, yes. But for the owner of a restaurant eating there, the rules would be somewhat different.

Seth

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S

When I make myself dinner, the cost of the food, cooking gas, depreciation on equipment, etc. aren't deductible, either.

Seth

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S

And again.

^^^^^^^^^^^^^^^^^that purse

^ when she gives it to you.

Is it in that case? What if she went shop(lift)ing without you?

Yes, she was: by the benefit to her of giving it as a gift.

What about the fact she used him as an unwitting accomplice?

Seth

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