Internal Revenue Code:Sec. 119. Meals or lodging furnished for the convenience of the employer
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Location in Internal Revenue Code
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter B - Computation of Taxable Income
PART III - ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME
Statute
Sec. 119. Meals or lodging furnished for the convenience of the
employer
(a) Meals and lodging furnished to employee, his spouse, and his
dependents, pursuant to employment
There shall be excluded from gross income of an employee the
value of any meals or lodging furnished to him, his spouse, or any
of his dependents by or on behalf of his employer for the
convenience of the employer, but only if -
(1) in the case of meals, the meals are furnished on the
business premises of the employer, or
(2) in the case of lodging, the employee is required to accept
such lodging on the business premises of his employer as a
condition of his employment.
(b) Special rules
For purposes of subsection (a) -
(1) Provisions of employment contract or State statute not to be
determinative
In determining whether meals or lodging are furnished for the
convenience of the employer, the provisions of an employment
contract or of a State statute fixing terms of employment shall
not be determinative of whether the meals or lodging are intended
as compensation.
(2) Certain factors not taken into account with respect to meals
In determining whether meals are furnished for the convenience
of the employer, the fact that a charge is made for such meals,
and the fact that the employee may accept or decline such meals,
shall not be taken into account.
(3) Certain fixed charges for meals
(A) In general
If -
(i) an employee is required to pay on a periodic basis a
fixed charge for his meals, and
(ii) such meals are furnished by the employer for the
convenience of the employer,
there shall be excluded from the employee's gross income an
amount equal to such fixed charge.
(B) Application of subparagraph (A)
Subparagraph (A) shall apply -
(i) whether the employee pays the fixed charge out of his
stated compensation or out of his own funds, and
(ii) only if the employee is required to make the payment
whether he accepts or declines the meals.
(4) Meals furnished to employees on business premises where meals
of most employees are otherwise excludable
All meals furnished on the business premises of an employer to
such employer's employees shall be treated as furnished for the
convenience of the employer if, without regard to this paragraph,
more than half of the employees to whom such meals are furnished
on such premises are furnished such meals for the convenience of
the employer.
(c) Employees living in certain camps
(1) In general
In the case of an individual who is furnished lodging in a camp
located in a foreign country by or on behalf of his employer,
such camp shall be considered to be part of the business premises
of the employer.
(2) Camp
For purposes of this section, a camp constitutes lodging which
is -
(A) provided by or on behalf of the employer for the
convenience of the employer because the place at which such
individual renders services is in a remote area where
satisfactory housing is not available on the open market,
(B) located, as near as practicable, in the vicinity of the
place at which such individual renders services, and
(C) furnished in a common area (or enclave) which is not
available to the public and which normally accommodates 10 or
more employees.
(d) Lodging furnished by certain educational institutions to
employees
(1) In general
In the case of an employee of an educational institution, gross
income shall not include the value of qualified campus lodging
furnished to such employee during the taxable year.
(2) Exception in cases of inadequate rent
Paragraph (1) shall not apply to the extent of the excess of -
(A) the lesser of -
(i) 5 percent of the appraised value of the qualified
campus lodging, or
(ii) the average of the rentals paid by individuals (other
than employees or students of the educational institution)
during such calendar year for lodging provided by the
educational institution which is comparable to the qualified
campus lodging provided to the employee, over
(B) the rent paid by the employee for the qualified campus
lodging during such calendar year.
The appraised value under subparagraph (A)(i) shall be determined
as of the close of the calendar year in which the taxable year
begins, or, in the case of a rental period not greater than 1
year, at any time during the calendar year in which such period
begins.
(3) Qualified campus lodging
For purposes of this subsection, the term ''qualified campus
lodging'' means lodging to which subsection (a) does not apply
and which is -
(A) located on, or in the proximity of, a campus of the
educational institution, and
(B) furnished to the employee, his spouse, and any of his
dependents by or on behalf of such institution for use as a
residence.
(4) Educational institution, etc.
For purposes of this subsection -
(A) In general
The term ''educational institution'' means -
(i) an institution described in section 170(b)(1)(A)(ii)
(or an entity organized under State law and composed of
public institutions so described), or
(ii) an academic health center.
(B) Academic health center
For purposes of subparagraph (A), the term ''academic health
center'' means an entity -
(i) which is described in section 170(b)(1)(A)(iii),
(ii) which receives (during the calendar year in which the
taxable year of the taxpayer begins) payments under
subsection (d)(5)(B) or (h) of section 1886 of the Social
Security Act (relating to graduate medical education), and
(iii) which has as one of its principal purposes or
functions the providing and teaching of basic and clinical
medical science and research with the entity's own faculty.
Sources
(Aug. 16, 1954, ch. 736, 68A Stat. 39; Pub. L. 95-427, Sec. 4(a),
Oct. 7, 1978, 92 Stat. 997; Pub. L. 95-615, title II, Sec. 205,
Nov. 8, 1978, 92 Stat. 3107; Pub. L. 96-222, title I, Sec.
108(a)(1)(G), Apr. 1, 1980, 94 Stat. 225; Pub. L. 97-34, title I,
Sec. 113, Aug. 13, 1981, 95 Stat. 195; Pub. L. 99-514, title XI,
Sec. 1164(a), Oct. 22, 1986, 100 Stat. 2511; Pub. L. 100-647, title
I, Sec. 1011B(d), Nov. 10, 1988, 102 Stat. 3489; Pub. L. 104-188,
title I, Sec. 1123(a), Aug. 20, 1996, 110 Stat. 1768; Pub. L.
105-206, title V, Sec. 5002(a), July 22, 1998, 112 Stat. 788.)
References in Text
REFERENCES IN TEXT
Section 1886(d)(5)(B) or (h) of the Social Security Act, referred
to in subsec. (d)(4)(B)(ii), is classified to section
1395ww(d)(5)(B) or (h) of Title 42, The Public Health and Welfare.
Miscellaneous
AMENDMENTS
1998 - Subsec. (b)(4). Pub. L. 105-206 added par. (4).
1996 - Subsec. (d)(4). Pub. L. 104-188 amended par. (4)
generally. Prior to amendment, par. (4) read as follows:
''Educational institution. - For purposes of this paragraph, the
term 'educational institution' means an institution described in
section 170(b)(1)(A)(ii).''
1988 - Subsec. (d). Pub. L. 100-647 struck out ''(as of the close
of the calendar year in which the taxable year begins)'' after
''appraised value'' in par. (2)(A)(i) and inserted at end ''The
appraised value under subparagraph (A)(i) shall be determined as of
the close of the calendar year in which the taxable year begins,
or, in the case of a rental period not greater than 1 year, at any
time during the calendar year in which such period begins.'' as
concluding provision.
1986 - Subsec. (d). Pub. L. 99-514 added subsec. (d).
1981 - Subsec. (c). Pub. L. 97-34 added subsec. (c).
1980 - Subsec. (a). Pub. L. 96-222 struck out ''General rule'' in
subsec. (a) as in effect on the day before the date of enactment of
the Foreign Earned Income Act of 1978 to correct a legislative
oversight in the amendment of subsec. (a) of this section by
section 205 of Pub. L. 95-615. The amendment by Pub. L. 95-615,
however, was executed without reference to ''General rule'' as the
probable intent of Congress, thereby requiring no change in text.
1978 - Subsec. (a). Pub. L. 95-615 designated existing provisions
as subsec. (a), added subsec. (a) heading, and substituted
''furnished to him, his spouse, or any of his dependents by or on
behalf of his employer for the convenience of the employer'' for
''furnished to him by his employer for the convenience of the
employer''.
Pub. L. 95-427 inserted provisions relating to factors not taken
into account with respect to meals and certain fixed charges for
meals.
EFFECTIVE DATE OF 1998 AMENDMENT
Pub. L. 105-206, title v, Sec. 5002(b), July 22, 1998, 112 Stat.
789, provided that: ''The amendment made by subsection (a)
(amending this section) shall apply to taxable years beginning
before, on, or after the date of the enactment of this Act (July
22, 1998).''
EFFECTIVE DATE OF 1996 AMENDMENT
Section 1123(b) of Pub. L. 104-188 provided that: ''The amendment
made by this section (amending this section) shall apply to taxable
years beginning after December 31, 1995.''
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100-647 effective, except as otherwise
provided, as if included in the provision of the Tax Reform Act of
1986, Pub. L. 99-514, to which such amendment relates, see section
1019(a) of Pub. L. 100-647, set out as a note under section 1 of
this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Section 1164(b) of Pub. L. 99-514 provided that: ''The amendment
made by subsection (a) (amending this section) shall apply to
taxable years beginning after December 31, 1985.''
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97-34 applicable with respect to taxable
years beginning after Dec. 31, 1981, see section 115 of Pub. L.
97-34, set out as a note under section 911 of this title.
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96-222 effective as if included in the
Foreign Earned Income Act of 1978, Pub. L. 95-615, see section
108(a)(2)(A) of Pub. L. 96-222, set out as a note under section 3
of this title.
EFFECTIVE DATE OF 1978 AMENDMENT
Section 4(b) of Pub. L. 95-427 provided that: ''The amendment
made by subsection (a) (amending this section) shall apply with
respect to taxable years beginning after December 31, 1953, and
ending after August 16, 1954.''
EFFECTIVE DATE OF 1978 AMENDMENT; ELECTION OF PRIOR LAW
Amendment by Pub. L. 95-615 applicable to taxable years beginning
after Dec. 31, 1977, with provision for election of prior law, see
section 209 of Pub. L. 95-615, set out as a note under section 911
of this title.
STATUTE OF LIMITATIONS
Pub. L. 96-605, title I, Sec. 107(b), Dec. 28, 1980, 94 Stat.
3524, provided that: ''In the case of any allowance received during
calendar year 1974, 1975, 1976, or 1977, subsections (a)(2) and (e)
of such section 3 (section 3 of Pub. L. 95-427, set out below)
shall be applied by substituting the date one year after the date
of the enactment of this Act (Dec. 28, 1980) for 'April 15, 1979'
each place it appears.''
TREATMENT OF CERTAIN STATUTORY SUBSISTENCE ALLOWANCES OR
SUBSISTENCE ALLOWANCES NEGOTIATED IN ACCORDANCE WITH STATE LAW
RECEIVED BY STATE POLICE OFFICERS BEFORE JANUARY 1, 1978
Section 3 of Pub. L. 95-427, as amended by Pub. L. 96-605, title
I, Sec. 107(a), Dec. 28, 1980, 94 Stat. 3524; Pub. L. 99-514, Sec.
2, Oct. 22, 1986, 100 Stat. 2095, provided that:
''(a) General Rule. - If -
''(1) an individual who was employed as a State police officer
received a statutory subsistence allowance or a subsistence
allowance negotiated in accordance with State law while so
employed,
''(2) such individual elects, on or before April 15, 1979, and
in such manner and form as the Secretary of the Treasury may
prescribe, to have this section apply to such allowance, and
''(3) this section applies to such allowance,
then, for purposes of the Internal Revenue Code of 1986 (formerly
I.R.C. 1954), such allowance shall not be included in such
individual's gross income.
''(b) Allowances to Which Section Applies. - For purposes of this
section, this section applies to any statutory subsistence
allowance or subsistence allowance negotiated in accordance with
State law which was received -
''(1) after December 31, 1969, and before January 1, 1974, to
the extent such individual did not include such allowance in
gross income on his income tax return for the taxable year in
which such allowance was received, or
''(2) during the calendar year 1974, 1975, 1976, or 1977.
''(c) Other Definitions. - For purposes of this section -
''(1) State police officer. - The term 'State police officer'
means any police officer (including a highway patrolman) employed
by a State (or the District of Columbia) on a full-time basis
with the power to arrest.
''(2) Income tax return. - The term 'income tax return' means
the return of the taxes imposed by subtitle A of the Internal
Revenue Code of 1986. If an individual filed before November 29,
1977, an amended return for any taxable year, such amended return
shall be treated as the return for such taxable year.
''(d) Limitation on Deduction. - If any individual receives a
subsistence allowance which is excluded from gross income under
subsection (a), no deduction shall be allowed under any provision
of chapter 1 of the Internal Revenue Code of 1986 for expenses in
respect of which he has received such allowance, except to the
extent that such expenses exceed the amount excludable from gross
income under subsection (a) and the excess is otherwise allowed as
a deduction under such chapter 1.
''(e) Statute of Limitations. - If refund or credit of any
overpayment of tax resulting from the application of this section
is prevented at any time on or before April 15, 1979, by the
operation of any law or rule of law (including res judicata),
refund or credit of such overpayment (to the extent attributable to
the application of this section) may, nevertheless, be made or
allowed if claim therefor is filed on or before April 15, 1979.''
References
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 132, 280A, 1402, 3121,
3231, 3306 of this title; title 42 sections 409, 411.
