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Commissioner, 36
B.T.A. 838 (1937)
Nov 11, 2014 by Vahid Dejwakh
Facts
Petitioner is manager of hotels in Hawaii, for which he receives both a salary and free room and board. The IRS Commissioner
includes the room and board that he and his wife receive as part of his taxable income. Petitioner argues he has to live in the
hotel room as a necessary part of his job as manager of the hotel, and that it should not be counted as constituting part of his
salary.
Issue(s)
Should petitioner's receipt of a room and board from his employer be counted as taxable income when petitioner is living there
at the request of his employer?
Analysis
and Discussion
The employer, in giving the room benefit to employee, has a purpose other than to compensate employee (i.e. a responsibility
to be available to fix hotel problems) > convenience of employer