LaMont works for a company in downtown Chicago. The firm encourages employees to
ID: 2706717 • Letter: L
Question
LaMont works for a company in downtown Chicago. The firm encourages employees to use public transportation (to save the environment) by providing them with transit passes at a cost of $296 per month.
If LaMont receives one pass (worth $296) each month, how much of this benefit must he include in his gross income each year?
If the company provides each employee with $296 per month in parking benefits, how much of the parking benefit must LaMont include in his gross income each year?
LaMont works for a company in downtown Chicago. The firm encourages employees to use public transportation (to save the environment) by providing them with transit passes at a cost of $296 per month.
Explanation / Answer
The amount is $230 for qualified transportation fringe as described in Rev. Proc. 2009-50. LaMont must include $240 per year into taxable income ($20 ($250 of benefits less $230 exclusion) per month into income)
=$240
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