### Question
How does Computation of Taxable Income define qualified employee discount?


### Answer
Under *26 U.S.C. § 132*, **qualified employee discount** is defined as:

> any employee discount with respect to qualified property or services to the extent such discount does not exceed—



(A) in the case of property, the gross profit percentage of the price at which the property is being offered by the employer to customers, or



(B) in the case of services, 20 percent of the price at which the services are being offered by the employer to customers

#### Citation:
  - *26 U.S.C. § 132*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART III-ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME**

