Qualified parking refers to parking spaces provided to employees by their employers. This parking is typically located on or near the employer's business premises or at a location where employees can access public transportation. It also includes parking for carpooling arrangements. However, it does not encompass parking spaces associated with the employee's residential property.
The term "qualified parking" is primarily used in tax law and employment benefits. It is relevant in determining the tax-exempt status of parking benefits provided by employers to their employees. Understanding qualified parking is essential for both employers and employees to ensure compliance with tax regulations and to take advantage of potential tax benefits. Users can manage related forms and procedures using templates available from US Legal Forms.
Here are a couple of examples of abatement:
Example 1: An employer offers free parking in a lot adjacent to their office building. This qualifies as qualified parking.
Example 2: A company provides a transit pass that allows employees to park at a nearby station and take public transportation to work. This also qualifies as qualified parking.
The primary legal reference for qualified parking is found in the Internal Revenue Code, specifically under 26 USCS § 132(f)(5)(C). This statute outlines the definition and conditions under which parking benefits can be considered tax-exempt.
| Term | Description | Difference |
|---|---|---|
| Qualified Parking | Parking provided by employers that meets specific tax-exempt criteria. | Focuses on employer-provided parking benefits. |
| Commuter Benefits | Broader category including transit passes and other commuting aids. | Includes various forms of transportation, not just parking. |
| Taxable Parking | Parking benefits that do not meet qualified criteria and are subject to taxation. | Taxable due to non-compliance with qualified parking standards. |
If you are an employer considering offering parking benefits, ensure they meet the criteria for qualified parking to maximize tax benefits. Employees should verify their eligibility for these benefits and understand how they affect their taxable income. For assistance, explore US Legal Forms for templates related to employee benefits and tax compliance.
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Qualified parking must be provided by an employer and located on or near the business premises or a transit access point.