Is there an unofficial rule of thumb for the maximum dollar amount of excludible de minimis fringe benefits (e.g., goods such as VCRs, clothing provided in holiday raffles, etc.) I am aware that $400 per person per year is the most an employer can deduct without a formal benefit plan but am wondering if the threshhold is not a bit lower for excluding the benefit from an employee's taxable income; e.g., $100 or $50. This as a result of reading Treas. Reg. Sec. 1.132-6(e). Any comments appreciated.

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There is no black and white rule on this. Many companies use a dollar threshold of between $25 and $100. However, I do know of a company that uses $250. It will all depend on what you think you can support on audit.

P.S. Remember that this is an aggregate limit so that you can't give someone a $100 VCR one month, $100 of clothing the next month, etc.

P.S.S. I wouldn't think that the $400 deduction limit applies if an amount is included as compensation income to the employee. The $400 limit generally applies to employee award programs (e.g., length of service, safety achievement).