Question

I own my business and have one employee. We operate in downtown Philadelphia and we pay a hefty price for parking.

Can I deduct the cost of my parking? How about the cost of my employee’s parking?

Answer

Let’s start with the easy part, your employee. As a tax-free fringe benefit in 2013, you can pay up to $245 a month for your employee’s parking.1

What’s even cooler is that the law allows you to bargain with the employee over this fringe benefit.

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