I'm trying to "do my own research" and not bother the board over something that should be so simple, but I'm running into conflicting information and I'm having trouble digesting the seemingly endless code.
I'm trying to figure out if a reasonable amount of popcorn, coffee, and donuts are deductible to a business if provided on a regular basis and if they are NOT included as taxable income to employees.
On one hand, I see that, unless you operate an employee cafeteria, are on an oil rig, or in a hostile area with no facilities around (like antarctica or a war zone, for example), that you must include the value of the meals as taxable income to the employee.
Then there is the de minimus rule - but that is for "occasional" meetings, so I don't think that applies even though the amounts are small, because in this example it's an everyday thing.
Then I read this:
https://www.irs.gov/pub/irs-drop/td-9925.pdf
Which has examples that these amounts can be deducted, but at 50%. (to me this assumes that it will NOT be included in employee income, otherwise it would be 100%)
So I've totally confused myself.
Can an office that does not meet the exceptions I mentioned provide a reasonable amount of coffee and donuts on a regular basis and deduct 50% of it without including it in employee taxable income?