What is considered a "de minimis" fringe benefit?

A "de minimis" fringe benefit refers to a service or item that has such a minimal value that it would be impractical to account for it in administrative records. The key concept is that the benefit is so small that the effort to track, report, and value it outweighs the benefit itself.

For example, items like occasional snacks at the office, small holiday gifts, or use of a company photocopier for personal purposes typically fall under this category. These benefits are generally considered exempt from taxation due to their nominal value and the negligible administrative burden they impose.

In contrast, the other options do not correctly capture the essence of a "de minimis" fringe benefit. Discounted services, business expense deductions, or even benefits with no inherent value do not specifically relate to the principle of being too small to bother with for record-keeping or tax purposes, which is the crux of the de minimis rule.