The Internal Revenue Service issued proposed regulations that provide guidance for the deduction of qualified transportation fringe and commuting expenses.
The Tax Cuts and Jobs Act (TCJA) does not allow deductions for qualified transportation fringe (QTF) expenses and does not allow deductions for certain expenses of transportation and commuting between an employee’s residence and place of employment.
The law also provided that a tax-exempt organization’s unrelated business taxable income is increased by the amount of the QTF expense that is nondeductible. However, on December 20, 2019, this was repealed as part of the Further Consolidated Appropriations Act of 2020. This repeal was retroactive to the original date of enactment by the TCJA.
If you’ve formed certain habits related to how you handle meals, entertainment, transportation, and parking as it relates to your business and taxes, the time to change those habits has come.
As this report notes, tax reform law commonly referred to as H.R. 1 Tax Cuts and Jobs Act of 2017 has changed the deductibility of certain meals, entertainment and transportation expenses. Before 2018, a taxpayer could deduct 50 percent of business meals and entertainment and 100 percent of meals provided through an in-house cafeteria or meals provided for the convenience of the employer (i.e., also known as a de minimis fringe benefit).
TaxConnections has a wide range of tax professionals with tax specialties. One of our members specializes in taxes for truckers, limo drivers and rideshare drivers. They are all taxpayers in the profession of transportation. When I interviewed TaxConnections Member Daniel Farmer, he told me he has enjoyed a lifelong interest in trucking and transportation. Daniel currently works out of Clearwater, FL where he manages an accounting practice serving small to medium size businesses. In fact, when Dan told me he has a collection of trucks I asked him to share it with us. Read More
When it comes to tracking your miles for taxes, we often talk about the mileage deduction and the mileage reimbursement. But there are other tax reasons to keep a mileage log. Let’s dive into the medical expense deduction and what role medical mileage plays. We’ll also discuss who can take this deduction, as well as what records you have to keep.
Travel to business-related conventions, seminars, or similar meetings can be tax deductible. This can include deductions for your transportation, lodging, and 50% of your meal expenses while on business. Learn about how to do this, as well as some of the IRS restrictions.
As you grow your business, you’ll often have to travel out of town for work purposes. But, we often get asked, “What travel expenses are deductible?” The IRS has some strict rules about this so let’s go over what you can and can’t write off at tax time.
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