IRS Commuting Tax Rules Offer Some Relief for Executives

Employee parking spaces were spared in IRS regulations reining in the other transportation benefits, like company-sponsored air travel for commuting.

The proposed rules (REG-119307-19; RIN 1545–BP49) address the 2017 tax law’s elimination of a deduction for certain transportation and commuting benefits under tax code Section 274. Some tax professionals were hoping commutes via plane—for executives who live in one city and work in another—wouldn’t face the limitation.

“It says the ‘employee’s residence and place of employment,’ and you would think that’s the employee’s house and that’s them driving to work,” said Christa Bierma, a principal at ...