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Walter works busy season at Abby’s Bed and Breakfast. His employer requires him to live in

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January 1st, 2018

Walter works busy season at Abby’s Bed and Breakfast. His employer requires him to live in a spare room so that he is available to assist with breakfast and take care of any other needs of the guests on their arrival or during their stays. The room is valued at $600 per month for the 6 months he works there. During this time, his employer pays Walter a salary of $1,200 per month and gives him an additional $200 per month to help pay the cost of health insurance that Walter purchases for himself. The employer also supplies him with uniforms for work valued at $700. What is Walter’s taxable income for the six months that he works at the bed and breakfast?

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