What qualifies as a working condition fringe benefit?

Author: Alice Gilman

A working condition fringe benefit is any property or service provided to an employee that he or she could deduct if he or she paid for the property or service. Working condition fringe benefits are limited to items that the employee could deduct under +IRC § 162, which refers to trade or business expenses, or +IRC § 167, which refers to depreciation. If another section of the IRC requires an employee to substantiate deductions to the IRS (e.g., by keeping receipts and completing a log book showing the purpose of the expense), the employee must substantiate the expenses to his or her employer.