What are typical de minimis benefits?

Here are examples of benefits that typically qualify as de minimis fringe benefits:

• typing of personal letters by a company secretary;

• use of company copying machine (see further discussion);

• flowers, fruit, books, or similar items furnished under special circumstances, such as during illness or for outstanding performance;

• occasional company cocktail parties, group meals, or picnics for employees;

• occasional supper money or taxi fare because of overtime work;

• traditional birthday or holiday gifts with a low fair market value;

• occasional theater or sporting event tickets;

• coffee, doughnuts, and soft drinks furnished to employees; and

• use of a company telephone for occasional personal calls.

As illustrated by the above examples, almost any minor property or service an employer provides its employees may be a de minimis benefit. However, an employer must keep in mind that it is the impracticality or unreasonableness of accounting for such a benefit that results in the tax exclusion.

Typical nonqualifying benefits. The value of any fringe benefit that would not be unreasonable or administratively impracticable to account for is includible in the employee's gross income. For example:

• season tickets to sporting or theatrical events;

• the commuting use of an employer-provided car or other vehicle more than one day a month;

• membership in a private country club or athletic facility, regardless of the frequency with which the employee uses the facility; and

• use of employer-owned or leased facilities such as an apartment, hunting lodge, boat, etc. for a weekend.

However, some of the value of these benefits may be excludable from income under other provisions, such as working condition fringe benefits [see What are working condition fringe benefits? at ¶44,080 ].