Deductions for parking expenses may be disallowed under changes enacted as part of the 2017 U.S. tax law. New proposed regulations might help employers determine how to apply the new law to real world situations.
The “Tax Cuts and Jobs Act” (TCJA) amended section 274, disallowing deductions for qualified transportation fringe benefit expenses, as well as expenses incurred for employee commuting. Proposed regulations related to this tax law amendment were published in the Federal Register on June 23, 2020. The proposed regulations provide taxpayers with additional guidance on calculating the loss of deduction under section 274 and several simplified methods to calculate the loss as well as proposed changes to methodologies originally discussed in Notice 2018-99.
Read an August 2020 report [PDF 114 KB] prepared by KPMG LLP: What’s News in Tax: IRS Releases Proposed Regulations on Qualified Parking Deductions with Some Lane Changes
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