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Tax Cuts and Jobs Act

IRS Issues Final REGs on Deduction for Qualified Transportation Fringe and Commuting Expenses

Thomson Reuters Tax & Accounting  

Thomson Reuters Tax & Accounting  

The IRS has issued final regs on the deductions for qualified transportation fringe and commuting expenses following changes made by the Tax Cuts and Jobs Act (PL 115-97; TCJA).

The TCJA generally disallows employer 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 final regs address the disallowance of the deduction for expenses related to QTFs provided to a taxpayer’s employee, including providing guidance and methodologies to determine the amount of QTF parking expenses that is nondeductible.

The final regs also address the disallowance of the deduction for expenses of transportation and commuting between an employee’s residence and place of employment.

Checkpoint will provide additional information about these final regs in a future Federal Tax Update.

To continue your research on qualified parking as a QTF, see FTC 2d/FIN ¶ H-2213.

 

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