What are you all doing with the cost of office snacks? I've heard different theories: 50% deduction based upon the changes to 274(n) and the plain language of 274(e)(1), a form of employee recreational expense 100% deductible under 274(e)(4) & 274(n), fully deductible under 132(e) de minimis fringe benefit.
IRC §274(e)(4) specifically provides an exception to the limitations rules for “expenses for recreational, social, or similar activities (including facilities therefor) primarily for the benefit of employees.” IRC §274(e)(4) wasn’t changed by the TCJA. These activities remain 100% deductible.
Just released, PLR 201903017. I'm not reading it now, but RIA summarizes issue 8 as saying that snacks are excludable from gross income as a de minimis fringe benefit under 132(e)(1). Therefore, I am going with fully deductible. Great timing for the PLR, right?
I work out of my home. If I put a small pantry and mini-fridge in my dedicated office, can I expense the food and drinks as snacks as long as I tell my wife to not raid my stash?