Lodging furnished by certain educational institutions to employees
(1) In general
(1)In general#
In the case of an employee of an educational institution, gross income shall not include the value of qualified campus lodging furnished to such employee during the taxable year.
(2)Exception in cases of inadequate rent#
Paragraph (1) shall not apply to the extent of the excess of—
(A) the lesser of— (i) 5 percent of the appraised value of the qualified campus lodging, or (ii) the average of the rentals paid by individuals (other than employees or students of the educational institution) during such calendar year for lodging provided by the educational institution which is comparable to the qualified campus lodging provided to the employee, over
(B) the rent paid by the employee for the qualified campus lodging during such calendar year.
The appraised value under subparagraph (A)(i) shall be determined as of the close of the calendar year in which the taxable year begins, or, in the case of a rental period not greater than 1 year, at any time during the calendar year in which such period begins.
(2)(A)#
the lesser of—
(i) 5 percent of the appraised value of the qualified campus lodging, or
(ii) the average of the rentals paid by individuals (other than employees or students of the educational institution) during such calendar year for lodging provided by the educational institution which is comparable to the qualified campus lodging provided to the employee, over
(2)(A)(i)#
5 percent of the appraised value of the qualified campus lodging, or
(3)Qualified campus lodging#
For purposes of this subsection, the term “qualified campus lodging” means lodging to which subsection (a) does not apply and which is—
(A) located on, or in the proximity of, a campus of the educational institution, and
(B) furnished to the employee, his spouse, and any of his dependents by or on behalf of such institution for use as a residence.
(3)(A)#
located on, or in the proximity of, a campus of the educational institution, and
(3)(B)#
furnished to the employee, his spouse, and any of his dependents by or on behalf of such institution for use as a residence.
(4)Educational institution, etc.#
For purposes of this subsection—
(A) In general The term “educational institution” means— (i) an institution described in section 170(b)(1)(A)(ii) (or an entity organized under State law and composed of public institutions so described), or (ii) an academic health center.
(B) Academic health center For purposes of subparagraph (A), the term “academic health center” means an entity— (i) which is described in section 170(b)(1)(A)(iii), (ii) which receives (during the calendar year in which the taxable year of the taxpayer begins) payments under subsection (d)(5)(B) or (h) of section 1886 of the Social Security Act (relating to graduate medical education), and (iii) which has as one of its principal purposes or functions the providing and teaching of basic and clinical medical science and research with the entity’s own faculty.
(4)(A)In general#
The term “educational institution” means—
(i) an institution described in section 170(b)(1)(A)(ii) (or an entity organized under State law and composed of public institutions so described), or
(ii) an academic health center.
(4)(A)(i)#
an institution described in section 170(b)(1)(A)(ii) (or an entity organized under State law and composed of public institutions so described), or