Taco Bell & Taxes

[Roland Slugg]

In'n'Out

OOOHHH White Castles! I so miss them. send me some to CA please!

Joan, have you tried an In'n'Out Burger? IMO they're the best of all burgers at FF places, and the stores are very pleasant places to go. There's one on Sunrise just north of Hwy 50 ... at Coloma, I believe.

I've heard of White Castle's but never had any. Don't think they've migrated out to CA or NV yet. Aren't those the tiny ones that most people buy 6 or 12 of at a time?

[Golden Rocket]

Civil War

Roland, White Castles are small, thin burgers that people can eat 12 at a time. Mostly found in the Midwest. Same thing as Krystal in the South. Both burgers are the inspiration behind the "Where's the Beef" commercial.

The first-ever hamburger fast-food chain, WC started in Kansas, I believe, but now are headquartered in Columbus, OH. Krystals were created and remain headquartered in Chattanooga. After WWII, Krystal was involved in an infamous scandal involving dog food fillers in their hamburger. White Castle has also been the target of jokes over the years, promolgated somewhat by an unsuccessful upstart chain in Michigan called "Top Hat."
I don't know whatever happened to Top Hat.

Although they do not have common ownership, they obviously have a comity agreement not-to-compete, and you can mark their territory with the Mason-Dixon line of Civil War fame. In the last 15 years or so, White Castle finally invaded Tennessee, and Krystal invaded Kentucky. These are the only two states you can find both restaurants.

[joanmcq]

Roland, I drive by that In-n-Out Burger every day on the way to work. They are good burgers, actually probably the best fast food burger around, but not the tasty little bites with chopped onions and some kinda seasoning that is a White Castle. No lettuce, tomato, special sauce or any kinda fancy stuff....your choice is with cheese or without. Sometimes I can find them frozen that you pop in the microwave, but still not quite the same. When I lived in Brooklyn, one night my friends and I rented a limo and toured Manhattan in style. Then after a while (and a few rounds) we decided to go to White Castle to treat the out-of-towner we were showing NYC in style. Trust me, pulling up to a Whitle Castle somewhere in the bowels of Brooklyn in a limo was a blast. We did warn him to take it easy, your belly's gotta acclimate to these puppies or you'll be in a heap o' hurt in the morning....

Dammit, another night of cereal in front of the computer for dinner. I can't wait until Tuesday!

[Jiggers]

In an' Out Burgers

When I lived in California in the late 70's I learned about these burgers.

Very good and very tasty. The french fries, **** the fat & cholesterol, are the best anywhere.

Every driving trip back to California to visit friends includes at least one trip to get those burgers and fries.

[Black Bart]

Jiggers: Beyond Burgers

Ahem...sorry to bother you again, but further research has brought to light a relevant pressing matter, which I believe qualifies as a so-called "deeper question." I wonder if you might comment a tad further on my original "Ductin' Donuts" inquiry?

See, here's the thing; on The Taxbook's page 13-27, which is prior to the "de minimis" section you quote, there's this statement: "Partners of partnerships...generally cannot exclude fringe benefits from income. For purposes of the excudable fringe benefit rules, an S corporation is treated as a partnership and a more than 2% shareholder of an S corporation is treated as a partner...(this) also...includes members of the shareholder's family, including a spouse..."

Well...you can see how it is. Since my wife owns 50%, it appears she may be in a taxable tight. This raises several concerns; to wit:

(1) Shoud I make her pay for her doughnut (this won't be easy -- she's kinda "funny" about interpretations of the law that affect her personally)?

(2) Can the corporation still deduct it even if I do add it to her W-2?

(3) The doughnut guy gives me a price-break 'cause I do his shoebox case cheap, and her glazed only cost me five cents. Should this "below market value" transaction be handled as a bartering exchange (I'd ignore the whole thing, but I'm afraid Luis will say it's "conspiracy to commit tax fraud")?

(4) Not a point of law or anything, but do you (or other boarders) think she'd be pacified if I offset her jacked-up W2 by throwing in a "lost wage deduction" for any late-night massages she cares to offer? After all, it's a practice throughout the industry, according to the professional massage girl on the other thread.

A quick response will be appreciated to finish this finger food fiasco.

"Look to the cookie, Elaine." -- Jerry Seinfeld

[Bees Knees]

See, here's the thing; on The Taxbook's page 13-27, which is prior to the "de minimis" section you quote, there's this statement: "Partners of partnerships...generally cannot exclude fringe benefits from income. For purposes of the excudable fringe benefit rules, an S corporation is treated as a partnership and a more than 2% shareholder of an S corporation is treated as a partner...(this) also...includes members of the shareholder's family, including a spouse..."

Page 13-27 goes on to say:

Taxable fringe benefits to more than 2%
S corporation shareholders include:
• Accident and health plans.
• Group-term life insurance.
• Meals and lodging furnished for the
employer’s convenience.
• Achievement awards.
• Adoption assistance.
• Moving expense reimbursements.
• Transportation benefits.

You will notice that "de minimis" fringe benefits are not included in the above list. Neither are pension plans. That is because partners of partnerships qualify for "de minimis" fringe benefits as well as qualified retirement plan contributions (see chart on page 13-7). Therefore, so do 2% S corporation shareholders.

[WhiteOleander]

Hey BB,
Just attach that new fangled form 8275R to your return. Then you can sleep easy. You told the IRS upfront you don't have a clue about what to deduct. And all is well. Seems the IRS is sayin' "As long as you tell us upfront you have screwed up the return, you're home safe."