Tax Treatment of Housing Benefits for U.S. Employees At the United Nations : Scheduled for a Hearing Before the Subcommittee On Select Revenue Measures of the Committee On Ways And Means On December 14, 1987 Jcx-25-87

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Certain types of -ype ) ce „,j. . - - _-- emp^„.^^ ^ ^^ income. Additionally, in some circumstances, lodging and employer-provided fringe benefits, including certain housing benefits, are specifically excluded from an employee's qross income certain housing benefits provided to individuals SniierNati^ns' ^""'^"^' '^°' *^^^ ""^^^^ states Mission to the -3- II. PRESENT-LAW TAX TREATMENT OF HOUSING BENEFITS Overview of tax treatment of housing benefits Gross income for purposes of computing Federa...l income taxes generally includes income received by a taxpayer in any form, whether in money, property, or services. Certain employer-provided fringe benefits, however, are specifically excluded from an employee's income for income and employment tax purposes. For instance, section 119 of the Internal Revenue Code of 1986 ("the Code") provides that an employee may exclude from gross income the value of lodging furnished to the employee and certain family members if: (1) the lodging is furnished on the employer's business premises, (2) the lodging is furnished for the convenience of the employer, and (3) the employee is required, as a condition of employment, to accept such lodging.

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