TN 28 (05-12)

A. Definition under Section 132 of the IRC

Any property or service provided to an employee by the employer is not wages to the extent that, if the employee had paid for it, such payment would be allowable as a deduction from gross income under the Internal Revenue Code (IRC):

• Section 162 (trade or business expenses); or

• Section 167 (depreciation of property used in a trade or business or held for production of income).

B. Auto salesman

Section 132(h)(3) and (4) of the IRC states that qualified automobile demonstration use and parking shall be treated as a working condition fringe.