Newsletters

Written by: Renee Vuylsteke, Enrolled Agent

2017 Tax Reform: No deduction allowed for cost of providing qualified transportation fringes benefits

Under the new Tax Cuts and Jobs Act, employer’s deduction for fringe benefit expenses is limited. This article describes the Act’s changes to employer’s parking deduction.

Employee’s Parking

The Act eliminates the tax deduction for employee transportation fringe benefits (e.g. parking and mass transit) for amounts incurred or paid after December 31, 2017. Under the Act, employers can still provide parking and transit passes to employees and the amount of the benefit is still excluded from the employee’s income however the employer will no longer get the deduction as an expense.

Employers looking for a way to be able to provide parking to employees and not lose the tax deduction might consider the following ideas:

• Renegotiate rental agreements and try to bundle rent and parking
• Increase employees wage and require them to pay their own parking.
• Consider establishing a Qualified Transportation Compensation Reduction Plan under IRC 132(f).

If you have any questions or would like to discuss these ideas further, please contact our office and discuss with your tax preparer.

          

With the beginning of the new year, we want to remind you of important tax due dates and deadlines that are just around the corner. In addition to these dates please keep in mind that information provided to our firm for 1040 preparation on or after March 23th 2018 will receive an extension.

Here is a recap of important dates to keep in mind as 2018 progresses:

• January 15, 2018 - 2017 4th quarter estimate payment
• January 31, 2018 - All information forms (W2/1099) are due to recipients and must be filed with the government
• March 15, 2018 - Form 1065 and 1120-S
• March 23, 2018 - Deadline to have individual tax prep info to Becker and Rosen
• April 17, 2018 - Form 1040, 1041, and 1120, unless extended
• April 17, 2018 - 2018 1st quarter estimate payment
• June 15, 2018 - 2018 2nd quarter estimate payment
• September 17, 2018 - 2018 3rd quarter estimate payment
• September 17, 2018 - Form 1120-S and 1065, if extended
• October 1, 2018 - Form 1041, if extended
• October 15, 2018 - Form 1040 and 1120, if extended
• January 15, 2019 - 2018 4th quarter estimate payment
   

This newsletter is intended to provide generalized information that is appropriate in certain situations. It is not intended or written to be used, and it cannot be used by the recipient, for the purpose of avoiding federal tax penalties that may be imposed on any taxpayer. The contents of this newsletter should not be acted upon without specific professional guidance. Please call us if you have questions. 

Links to Third Party Websites
For your convenience, this newsletter may contain hyperlinks to websites and servers maintained by third parties. We do not control, evaluate, endorse or guarantee content found in those sites. We do not assume any responsibility or liability for the actions, products, services and content of these sites or the parties that operate them. Your use of such sites is entirely at your own risk.