Cambro Construction Company hires union carpenters for home building. Cambro requires, as a condition of employment, that

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Cambro Construction Company hires union carpenters for home building. Cambro requires, as a condition of employment, that the carpenters provide and maintain various tools of their trade. Cambro pays each carpenter a set amount per hour as a “tool allowance” to cover the costs of the tools. This amount is deter-mined quarterly based on national compiled data on the costs of carpenters’ tools. How should this employee reimbursement be treated for tax purposes?
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Federal Tax Research

ISBN: 9781285439396

10th Edition

Authors: Roby Sawyers, William Raabe, Gerald Whittenburg, Steven Gill

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