Posts by David Marino

Another Tax Increase on Business That You Likely Are Not Prepared For

David Marino on October 24, 2019

The federal government has slipped in a new tax increase on businesses that is going to catch financial executives unprepared and in conflict with their auditors in how to account for it. As of this year, parking expenses for employees, including an amount allocated to parking if not broken out in rent/lease payments, are nondeductible for tax purposes. The applicable tax code section is US Code Sec. 274(a)(4). The IRS clarifies in Notice 2018-99 that parking expenses are included as part of the nondeductible transportation expenses. This is the case even when employers or employees do not pay for parking as a separate expense from the landlord or other third party. The calculation can get quite technical, so here is more background on the IRS stipulations.