Tax Deduction for Parking Space
Is there a tax deduction for making a parking space? Surprisingly the answer to this question is yes. It is part of the Governments program to improve accessibility for the disabled.
The Federal tax deduction program has the rather long and unwieldy name of the Federal Tax Deduction for the Removal of Architectural and Transportation Barriers to People with Disabilities and the Elderly. There are also certain tax credits on both the Federal and State level that encourage this same idea. A tax deduction for a parking space might not make perfect sense for a pure profit and loss point of view. This is what makes this kind of business deduction subject to special consideration.
Most business deductions are those items that are the expenses of doing business. The words ordinary and necessary are often used to determine the validity of a business expense. There are many local, State, and Federal laws and regulations that require handicap access and parking. Any expense that is incurred by a business in the fulfillment of these requirements and to comply with the law would, naturally, be a necessary expense.
The idea of special deductions is to encourage actions by the business that go beyond the scope of the requirements and the law. Any activity like increased handicap parking and architectural changes to buildings to enhance accessibility that go above what is needed and required would also be tax deductible. The ability to reduce taxes by doing something that is in the best interest of the company is something that should provide much incentive that can only result in improvements in the area of handicapped accessibility.
In recent years enforcement of the laws that apply to handicapped parking and accessibility has become stricter and enforcement has followed suit. It is not in any company’s best interest to ignore this issue and this has made the expense of compliance a very normal and necessary business expense that impacts the bottom line and the taxable dollar.
The United States Government and its complex tax code has often pushed for positive social change via the laws that concern allowable deductions. When Federal programs are put into place that allow additional deductions for such things as more handicapped parking and structural changes to lower barriers to the disabled, the business community is faced with a win/win situation of increasing their profits through lowered taxes and doing a positive thing for the community they serve