Was wondering if anyone has an accountant that they would recommend who is familiar with the new bike commuter tax credit.
Tax Credit? Hm.. This is the first I've heard of it. In answer to your question, no. I know of no accountant who is familiar with a bike communter tax credit.
Would you care to enlighten us? How does this tax credit work?
I'm not an accountant, but I work in the payroll industry with accountants, and I am familiar with the bike tax credit.
Here's what I know, in a nutshell:
The Qualified bicycling commuting reimbursement (aka bike commuting credit) is essentially a qualified transportation fringe benefit available to employers, much like paying for parking, transit passes, or vanpool.
It is not a credit an individual can take on a tax return.
It is $20 per month-- per IRS publication 15B for 2010: "For any calendar year, the exclusion for qualified bicycle commuting reimbursement includes any employer reimbursement during the 15-month period beginning with the first day of the calendar year for reasonable expenses incurred by the employee during the calendar year.
"Reasonable expenses include:
-- The purchase of a bicycle and
-- Bicycle improvements, repair, and storage.
"These are considered reasonable expenses as long as the bicycle is regularly used for travel between the employee's residence and place of employment."
The $20 per qualified bicycle commuting month is excluded from wages (it is given to employee outside of payroll).
S-corporation owners cannot take advantage of the qualified transportation benefits. Employers may not combine the bicycle commuting reimbursement with any other qualified transportation fringe benefit.
Hope this helps; for more info, read through pages 19 and 20 of IRS publication 15B, available free on the IRS website at www.irs.gov.
Thanks, Haven. dlandrum, you can find more information on this over here.
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