§ 119. Meals or lodging furnished for the convenience of the employer
(a)
Meals and lodging furnished to employee, his spouse, and his dependents, pursuant to employment
There shall be excluded from gross income of an employee the value of any meals or lodging furnished to him, his spouse, or any of his dependents by or on behalf of his employer for the convenience of the employer, but only if—
(b)
Special rules
For purposes of subsection (a)—
(1)
Provisions of employment contract or State statute not to be determinative
In determining whether meals or lodging are furnished for the convenience of the employer, the provisions of an employment contract or of a State statute fixing terms of employment shall not be determinative of whether the meals or lodging are intended as compensation.
(2)
Certain factors not taken into account with respect to meals
In determining whether meals are furnished for the convenience of the employer, the fact that a charge is made for such meals, and the fact that the employee may accept or decline such meals, shall not be taken into account.
(3)
Certain fixed charges for meals
(4)
Meals furnished to employees on business premises where meals of most employees are otherwise excludable
All meals furnished on the business premises of an employer to such employer’s employees shall be treated as furnished for the convenience of the employer if, without regard to this paragraph, more than half of the employees to whom such meals are furnished on such premises are furnished such meals for the convenience of the employer.
(c)
Employees living in certain camps
(1)
In general
In the case of an individual who is furnished lodging in a camp located in a foreign country by or on behalf of his employer, such camp shall be considered to be part of the business premises of the employer.
(2)
Camp
For purposes of this section, a camp constitutes lodging which is—
(A)
provided by or on behalf of the employer for the convenience of the employer because the place at which such individual renders services is in a remote area where satisfactory housing is not available on the open market,
(d)
Lodging furnished by certain educational institutions to employees
(1)
In general
In the case of an employee of an educational institution, gross income shall not include the value of qualified campus lodging furnished to such employee during the taxable year.
(2)
Exception in cases of inadequate rent
Paragraph (1) shall not apply to the extent of the excess of—
The appraised value under subparagraph (A)(i) shall be determined as of the close of the calendar year in which the taxable year begins, or, in the case of a rental period not greater than 1 year, at any time during the calendar year in which such period begins.
(3)
Qualified campus lodging
For purposes of this subsection, the term “qualified campus lodging” means lodging to which subsection (a) does not apply and which is—
(4)
Educational institution, etc.
For purposes of this subsection—
(A)
In general
The term “educational institution” means—
(i)
an institution described in section
170
(b)(1)(A)(ii) (or an entity organized under State law and composed of public institutions so described), or
(B)
Academic health center
For purposes of subparagraph (A), the term “academic health center” means an entity—