### Question
How does the law define on-premises athletic facility?


### Answer
Under *26 U.S.C. § 132*, **on-premises athletic facility** is defined as:

> any gym or other athletic facility—


(i) which is located on the premises of the employer,


(ii) which is operated by the employer, and


(iii) substantially all the use of which is by employees of the employer, their spouses, and their dependent children (within the meaning of subsection (h))

#### 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**

