The IRS and Treasury issued Wednesday, Dec. 9, final regulations on the deduction for qualified transportation fringe and commuting expenses following changes made by the Tax Cuts and Job Act (TCJA).
The 2017 TCJA generally disallows deductions for qualified transportation fringe (QTF) benefit expenses and does not allow deductions for certain expenses of transportation and commuting between an employee’s home and place of employment. QTF benefits include mass transit benefits, van pools, qualified parking and some other commuter benefits.
The final regulations address the disallowance of the deduction for expenses related to QTFs provided to an employee of the taxpayer, including guidance and methodologies to determine the amount of QTF parking expenses that is nondeductible.