jbk[at]piasystems.com wrote:

- quote -

In my state, this is (or was) allowed at the state income
tax level only. I don't recall there ever being a federal
deduction (or exclusion).

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<jbk[at]piasystems.com> wrote:

- quote -

IRC Section 132:

(a) EXCLUSION FROM GROSS INCOME
Gross income shall not include any fringe benefit which qualifies as a --
(1) no-additional-cost service,
(2) qualified employee discount,
(3) working condition fringe,
(4) de minimis fringe,
*** (5) qualified transportation fringe,
(6) qualified moving expense reimbursement,
(7) qualified retirement planning services, or
(8) qualified military base realignment and closure fringe.

(f) QUALIFIED TRANSPORTATION FRINGE
(1) IN GENERAL

For purposes of this section, the term "qualified transportation
fringe" means any of the following provided by an employer to an
employee:
(A) Transportation in a commuter highway vehicle if such
transportation is in connection with travel between the
employee's residence and place of employment.
(B) Any transit pass.
(C) Qualified parking.

(2) LIMITATION ON EXCLUSION
The amount of the fringe benefits which are provided by an employer
to any employee and which may be excluded from gross income under
subsection (a)(5) shall not exceed--
(A) $100 per month in the case of the aggregate of the benefits
described in subparagraphs (A) and (B) of paragraph (1), and
(B) $175 per month in the case of qualified parking.

Any questions?

Bryan

--
Bryan Kellar, EA
Oregon Tax Help, Inc. -- Portland, Oregon
www.oregontaxhelp.com
www.canadatax.org

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Some sites indicate that bus passes for commuting can be
deducted pretax from the employee's salaries but the IRS in
Publication 463 seems to indicate that they cannot be. Does
anyone know the truth? Supposedly the the Taxpayer Relief
Act of 1997 allows the deduction? If so, how does one find
what the current limit is?

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