Education Lab: Free Parking? Analyzing Your Organizations Taxable Parking Expense

Tuesday, June 11, 2019

The Federal Tax Cuts and Jobs Act added a new Code section requires tax-exempt organizations to increase their unrelated business taxable income by an amount paid or incurred for qualified transportation fringe benefits provided to employees. Organizations who may never have had taxable income previously will now be required to pay unrelated business income tax. This education lab will discuss the analysis and determination of parking spaces subject to unrelated business income tax including employee and nonemployee spots and review the application of the IRS 4-part reasonableness “safe-harbor” for determination of taxable parking expense.