Tax-- parking and tolls?

Question

i got a question from my textbook,, is toll&parking for business that paid by employee deductible? from the book, it's deductible under the actual cost method, but i checked the IRS, it said it's not deductible. http://www.irs.gov/publications/p17/ch26.html#d0e62028
does anyone if it's deductible or not? if yes, then what is the limitation?

Answer 1

Your text is correct, but you have to tell us the purpose of the expenses.

Employees spending money to conduct their work can use mileage or cost methods.

Employees traveling for work have a little bit different rules, as do employees traveling to a temporary work site.

(I believe they're deductible in all three circumstances, but as I said, you have a choice in how you do it.)

Answer 2

The section you cite is for parking at your place of employment. That's not deductible, nor is anything associated with just commuting to and from the workplace. What is deductible is parking fees associated with visiting a client or customer.

Tolls would be deductible if you're traveling from one workplace to another in the course of your business or profession when you are traveling within your tax home; visiting clients, going to a business meeting away from your workplace.

Answer 3

Not if it's commuting, and parking at your job, but if employee has to travel on business, yes unless it's reimbursed by the employer, which it normally would be. If it's not, could be taken as an unreimbursed employee business expense - but that's only if the employee itemizes, and is subject to deduction of 2% of AGI