Why not?
IRC Section 162(f) is clear: no deduction is allowed for fines or penalties paid to a government entity for violations of law. This includes:
- Parking tickets
- Speeding tickets
- Red light camera tickets
- Building code violations
- OSHA fines
- EPA penalties
- Any government fine, period
What IS deductible for parking?
While tickets aren't deductible, legitimate business parking costs are:
- Parking meters while at a business meeting
- Parking garage fees during business travel
- Airport parking for business trips
- Monthly parking at your business location
These are deductible whether you use the standard mileage rate or actual expenses method for your vehicle.
IRS Reference
See IRC Section 162(f) for the prohibition on deducting fines and penalties. Legitimate parking expenses: IRS Publication 463, Chapter 1.
See IRC Section 162(f) for the prohibition on deducting fines and penalties. Legitimate parking expenses: IRS Publication 463, Chapter 1.
Separate parking fees from fines
Hivebooks helps you categorize parking expenses correctly so deductible garage fees don't get lumped in with non-deductible tickets.
Try Hivebooks Free →