#### § 1.132-0 Outline of regulations under section 132.

The following is an outline of regulations in this section relating to exclusions from gross income for certain fringe benefits:

## § 1.132-0 Outline of regulations under section 132.

## § 1.132-1 Exclusion from gross income for certain fringe benefits.

§ 1.132-1 (a) In general.

§ 1.132-1 (b) Definition of employee.

(1) No-additional-cost services and qualified employee discounts.

(2) Working condition fringes.

(3) On-premises athletic facilities.

(4) De minimis fringes.

(5) Dependent child.

§ 1.132-1 (c) Special rules for employers—Effect of section 414.

§ 1.132-1 (d) Customers not to include employees.

§ 1.132-1 (e) Treatment of on-premises athletic facilities.

(1) In general.

(2) Premises of the employer.

(3) Application of rules to membership in an athletic facility.

(4) Operation by the employer.

(5) Nonapplicability of nondiscrimination rules.

§ 1.132-1 (f) Nonapplicability of section 132 in certain cases.

(1) Tax treatment provided for in another section.

(2) Limited statutory exclusions.

§ 1.132-1 (g) Effective date.

## § 1.132-2 No-additional-cost services.

§ 1.132-2 (a) In general.

(1) Definition.

(2) Excess capacity services.

(3) Cash rebates.

(4) Applicability of nondiscrimination rules.

(5) No substantial additional cost.

(6) Payments for telephone service.

§ 1.132-2 (b) Reciprocal agreements.

§ 1.132-2 (c) Example.

## § 1.132-3 Qualified employee discounts.

§ 1.132-3 (a) In general.

(1) Definition.

(2) Qualified property or services.

(3) No reciprocal agreement exception.

(4) Property of services provided without charge, at a reduced price, or by rebates.

(5) Property or services provided directly by the employer or indirectly through a third party.

(6) Applicability of nondiscrimination rules.

§ 1.132-3 (b) Employee discount.

(1) Definition.

(2) Price to customers.

(3) Damaged, distressed, or returned goods.

§ 1.132-3 (c) Gross profit percentage.

(1) In general.

(2) Line of business.

(3) Generally accepted accounting principles.

§ 1.132-3 (d) Treatment of leased sections of department stores.

(1) In general.

(2) Employees of the leased section.

§ 1.132-3 (e) Excess discounts.

## § 1.132-4 Line of business limitation.

§ 1.132-4 (a) In general.

(1) Applicability.

(2) Definition.

(3) Aggregation of two-digit classifications.

§ 1.132-4 (b) Grandfather rule for certain retail stores.

(1) In general.

(2) Taxable year of affiliated group.

(3) Definition of “sales”.

(4) Retired and disabled employees.

(5) Increase of employee discount.

§ 1.132-4 (c) Grandfather rule for telephone service provided to pre-divestiture retirees.

§ 1.132-4 (d) Special rule for certain affiliates of commercial airlines.

(1) General rule.

(2) “Airline affiliated group” defined.

(3) “Qualified affiliate” defined.

§ 1.132-4 (e) Grandfather rule for affiliated groups operating airlines.

§ 1.132-4 (f) Special rule for qualified air transportation organizations.

§ 1.132-4 (g) Relaxation of line of business requirement.

§ 1.132-4 (h) Line of business requirement does not expand benefits eligible for exclusion.

## § 1.132-5 Working condition fringes.

§ 1.132-5 (a) In general.

(1) Definition.

(2) Trade or business of the employee.

§ 1.132-5 (b) Vehicle allocation rules.

(1) In general.

(2) Use of different employer-provided vehicles.

(3) Provision of a vehicle and chauffeur services.

§ 1.132-5 (c) Applicability of substantiation requirements of sections 162 and 274(d).

(1) In general.

(2) Section 274(d) requirements.

§ 1.132-5 (d) Safe harbor substantiation rules.

(1) In general.

(2) Period for use of safe harbor rules.

§ 1.132-5 (e) Safe harbor substantiation rule for vehicles not used for personal purposes.

§ 1.132-5 (f) Safe harbor substantiation rule for vehicles not available to employees for personal use other than commuting.

§ 1.132-5 (g) Safe harbor substantiation rule for vehicles used in connection with the business of farming that are available to employees for personal use.

(1) In general.

(2) Vehicles available to more than one individual.

(3) Examples.

§ 1.132-5 (h) Qualified nonpersonal use vehicles.

(1) In general.

(2) Shared usage of qualified nonpersonal use vehicles.

§ 1.132-5 (i) [Reserved]

§ 1.132-5 (j) Application of section 280F.

§ 1.132-5 (k) Aircraft allocation rule.

§ 1.132-5 (l) [Reserved]

§ 1.132-5 (m) Employer-provided transportation for security concerns.

(1) In general.

(2) Demonstration of bona fide business-oriented security concerns.

(3) Application of security rules to spouses and dependents.

(4) Working condition safe harbor for travel on employer-provided aircraft.

(5) Bodyguard/chauffeur provided for a bona fide business-oriented security concern.

(6) Special valuation rule for government employees.

(7) Government employer and employee defined.

(8) Examples.

§ 1.132-5 (n) Product testing.

(1) In general.

(2) Employer-imposed limits.

(3) Discriminating classifications.

(4) Factors that negate the existence of a product testing program.

(5) Failure to meet the requirements of this paragraph (n).

(6) Example.

§ 1.132-5 (o) Qualified automobile demonstration use.

(1) In general.

(2) Full-time automobile salesman.

(3) Demonstration automobile.

(4) Substantial restrictions on personal use.

(5) Sales area.

(6) Applicability of substantiation requirements of sections 162 and 274(d).

(7) Special valuation rules.

§ 1.132-5 (p) Parking.

(1) In general.

(2) Reimbursement of parking expenses.

(3) Parking on residential property.

(4) Dates of applicability.

§ 1.132-5 (q) Nonapplicability of nondiscrimination rules.

§ 1.132-5 (r) Volunteers.

(1) In general.

(2) Limit on application of this paragraph.

(3) Definitions.

(4) Example.

## § 1.132-6 De minimis fringes.

§ 1.132-6 (a) In general.

§ 1.132-6 (b) Frequency.

(1) Employee-measured frequency.

(2) Employer-measured frequency.

§ 1.132-6 (c) Administrability.

§ 1.132-6 (d) Special rules.

(1) Transit passes.

(2) Occasional meal money or local transportation fare.

(3) Use of special rules or examples to establish a general rule.

(4) Benefits exceeding value and frequency limits.

§ 1.132-6 (e) Examples.

(1) Benefits excludable from income.

(2) Benefits not excludable as de minimis fringes.

§ 1.132-6 (f) Nonapplicability of nondiscrimination rules.

## § 1.132-7 Employer-operated eating facilities.

§ 1.132-7 (a) In general.

(1) Conditions for exclusion.

(2) Employer-operated eating facility for employees.

(3) Operation by the employer.

(4) Example.

§ 1.132-7 (b) Direct operating costs.

(1) In general.

(2) Multiple dining rooms or cafeterias.

(3) Payment to operator of facility.

§ 1.132-7 (c) Valuation of non-excluded meals provided at an employer-operated eating facility for employees.

## § 1.132-8 Fringe benefit nondiscrimination rules.

§ 1.132-8 (a) Application of nondiscrimination rules.

(1) General rule.

(2) Consequences of discrimination.

(3) Scope of the nondiscrimination rules provided in this section.

§ 1.132-8 (b) Aggregation of Employees.

(1) Section 132(a) (1) and (2).

(2) Section 132(e)(2).

(3) Classes of employees who may be excluded.

§ 1.132-8 (c) Availability on substantially the same terms.

(1) General rule.

(2) Certain terms relating to priority.

§ 1.132-8 (d) Testing for discrimination.

(1) Classification test.

(2) Classifications that are per se discriminatory.

(3) Former employees.

(4) Restructuring of benefits.

(5) Employer-operated eating facilities for employees.

§ 1.132-8 (e) Cash bonuses or rebates.

§ 1.132-8 (f) Highly compensated employee.

(1) Government and non-government employees.

(2) Former employees.

## § 1.132-9 Qualified transportation fringes.

§ 1.132-9 (a) Table of contents.

§ 1.132-9 (b) Questions and answers.

[T.D. 8256, 54 FR 28600, July 6, 1989, as amended by T.D. 8457, 57 FR 62196, Dec. 30, 1992]