Employer-provided housing - Fringe Benefit

[ZoomnFinancial]

With all the changes this seems like the year for new things... Here is yet another one!  

Start-up company so even though most of the work could be done remotely, employer wants employee on location for majority (4 out of 5 days at least) for management discussion, face to face vendor meetings, etc. It's a 4 hour commute one way. Employer purchasing a town home for employee and one other employee that will be traveling. Town home is being purchased under another entity of owner of start-up.

Fringe Benefit or not to employees? 

I would have said yes to fringe benefit except an "exception can be granted if the lodging is for the convenience of the employer, is on the business's premises, and is provided as a condition of employment."    

Can EE be covered if it's written into the employment contract? 

Anyone have any experience?

 

[Pacun]

Which return are you doing? It is clear that this arrangement is for the benefit of the employer so if you are preparing the return for an employee, I would just ignore it. Now if you are preparing the return for the employer, you do need to research it.

[ZoomnFinancial]

9 minutes ago, Pacun said:

Which return are you doing? It is clear that this arrangement is for the benefit of the employer so if you are preparing the return for an employee, I would just ignore it. Now if you are preparing the return for the employer, you do need to research it.

Sorry I left that out. It's not for a specific return at this time. It's a proposed business deal for a current client.