Analyze all or a portion of Benaglia v. Comm., using the Issue, Rule, Application, and Conclusion methodology in your comments below. Remember to “Blue Book” where appropriate.
Benaglia v. Comm., 36 BTA 838 – Board of Tax Appeals 1937
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Facts: Benaglia was constantly on duty for his job as manger of several hotels in Hawaii. Benaglia and his wife lived at one of the hotels and received their meals at from the hotel.
Issue: Is Benaglia’s food and lodging taxable income?
Rule: IRC 132
Application: Benaglia’s residence at the hotel was necessary to perform his job. The arrangement was for the convenience of the employer. Benaglia’s salary was fixed without reference to the food and lodging. Neither Benaglia, nor employer considered food and lodging compensation.
Conclusion: Benaglia’s food and lodging not includable as taxable income.