The Tax Cuts and Jobs Act includes a provision that denies businesses deductions related to qualified transportation fringe benefits. This includes qualified parking provided to employees by an employer. The result is a disallowance of the costs related to employee parking on the business's tax return. There is an exception to the disallowance for parking that is available to the general public. The IRS issued interim guidance which included information on how to compute any nondeductible parking expense in Notice 2018-99.
The AICPA made several recommendations to the IRS in its comment letter in response to IRS Notice 2018-99. Included in the AICPA's recommendations is a suggestion that parking meets the general public test in the following situation:
The IRS is expected to publish proposed regulations with additional guidance. We will continue to monitor this guidance and provide you with necessary updates.
You're Invited! Annual Not-For-Profit Accounting Update
Thursday, September 26, 2019
Hosted at Detroit Historical Museum
Save The Date!
Middle Market Manufacturing Outlook
Wednesday, October 23
Hosted at the Detriot Athletic Club
7:30 AM - 11:30 AM