IRS FRINGE BENEFIT UPDATE

[Lee B]

Bicycle Commuting Reimbursements No Longer Excluded from Employees’ Income but Still Deductible by Employers

Under the new tax law, employers can deduct qualified bicycle commuting reimbursements as a business expense for 2018 through 2025. 

The new tax law suspends the exclusion of qualified bicycle commuting reimbursements from an employee’s income for 2018 through 2025.  Employers must now include these reimbursements in the employee’s wages.

Qualified Moving Expenses Reimbursements No Longer Excluded from Employees’ Income Except for Certain Members of the Armed Forces

For 2018 through 2025, employers must include moving expense reimbursements in employees’ wages. The new tax law suspends the exclusion for qualified moving expense reimbursements.

One exception: Members of the U.S. Armed Forces can still exclude qualified moving expense reimbursements from their income if:

• They are on active duty
• They move pursuant to a military order and incident to a permanent change of station
• The move expenses would qualify as a deduction if the employee didn’t get a reimbursement

Employee Achievement Award — Tangible Personal Property Defined  

Special rules allow an employee to exclude certain achievement awards from their wages if the awards are tangible personal property. An employer also may deduct awards that are tangible personal property, subject to certain deduction limits. 

The new law clarifies that tangible personal property doesn’t include cash, cash equivalents, gift cards, gift coupons, certain gift certificates, tickets to theater or sporting events, vacations, meals, lodging, stocks, bonds, securities, and other similar items

[BulldogTom]

6 hours ago, cbslee said:

The new law clarifies that tangible personal property doesn’t include cash, cash equivalents, gift cards, gift coupons, certain gift certificates, tickets to theater or sporting events, vacations, meals, lodging, stocks, bonds, securities, and other similar items

You mean all the stuff employers want to give to employees (and deduct) without running it through payroll.....

Tom
Modesto, CA

[Max W]

"Special rules allow an employee to exclude certain achievement awards from their wages if the awards are tangible personal property. An employer also may deduct awards that are tangible personal property, subject to certain deduction limits. "

The key is those "certain deduction limits" ?

Will 5 carat diamond rings, Rolex watches, Lamborghini's be allowed?  Don't think my clients will be so lucky.

 

[Catherine]

@Max W - you don't want a Lamborghini anyway.  My husband got to ride in one once. long ago, he said it was like siting in a recliner, three inches above the highway, going 90mph.  Not fun.

[Abby Normal]

10 hours ago, Catherine said:

@Max W - you don't want a Lamborghini anyway.  My husband got to ride in one once. long ago, he said it was like siting in a recliner, three inches above the highway, going 90mph.  Not fun.

How can that not be fun?!

[Catherine]

3 hours ago, Abby Normal said:

How can that not be fun?!

He said it wasn't.  And he's not here to ask for more details.  

[BulldogTom]

10 hours ago, Abby Normal said:

How can that not be fun?!

That was my question.   I would like to do that one time.

Tom
Modesto, CA

[Max W]

On 9/11/2018 at 7:19 PM, Catherine said:

@Max W - you don't want a Lamborghini anyway.  My husband got to ride in one once. long ago, he said it was like siting in a recliner, three inches above the highway, going 90mph.  Not fun.

That's what sports cars are all about.  Your butt scraping the pavement and the adrenaline rush of high speed.  Hmm! Only 90 mph? Must of needed a tune up!

My college roommate had a Facel-Vega.  They stopped making them in 1964, but the sporty coupe model had a 354 Chrysler hemi motor that was rated at 325 HP. That was a lot of HP for a small car. The first time out  my friend took it up one of SF's steeper hills, it went up so fast I though we  were going to shoot off into space.  

 

[Abby Normal]

This is exactly why I love roller coasters.

[Catherine]

5 hours ago, Abby Normal said:

This is exactly why I love roller coasters.

I used to love roller coasters myself.  Stopped loving them when they put in the over-the-shoulder harness contraptions.  They always hit me mid-head level and by the time I'm off the ride I have bruises behind my ears from my glasses getting trapped and bashed.  Grrr.  Give me one of the old wooden coasters with a lap-holder and I'll ride all day long!

[Abby Normal]

You must be this tall to ride this coaster.

[Richcpaman]

On ‎09‎/‎13‎/‎2018 at 2:33 AM, Max W said:

That's what sports cars are all about.  Your butt scraping the pavement and the adrenaline rush of high speed.  Hmm! Only 90 mph? Must of needed a tune up!

My college roommate had a Facel-Vega.  They stopped making them in 1964, but the sporty coupe model had a 354 Chrysler hemi motor that was rated at 325 HP. That was a lot of HP for a small car. The first time out  my friend took it up one of SF's steeper hills, it went up so fast I though we  were going to shoot off into space.  

 

For my son's 21st birthday, we went to Las Vegas....  with a group of 5 cars, we drove as fast as we could go across the desert..., A Ferrari, Lambo, Audi A8 and Jag.  Swweeeetttt!

[Catherine]

On 9/12/2018 at 9:18 AM, Abby Normal said:

How can that not be fun?!

When you have to be passenger, not driver?