Working late? Give yourself some tax perks...
Do you find yourself often burning the midnight oil at the office? It takes long hours and hard work to make a business a success.
Here are three common options to get the most out of working late... from a tax perspective.
- Free parking. If you work past regular hours, you may incur additional charges for parking your car in a lot or garage. The tax law allows your company to provide a monthly benefit of up to $240 in 2013 without any tax consequences. If you exceed the monthly allowance due to the late hours, the company can reimburse you tax-free as a "working condition" fringe benefit, as long as the parking is for safety reasons.
- Cab fare. Similarly, you may need to take a cab ride home late at night instead of using public transportation. If your company reimburses you for the fare, the reimbursement is typically tax-free, as long as you don't make it a regular habit. But if you're taking a cab home due to safety concerns or because your employer requested that you work late, the reimbursement is tax-free to the extent it exceeds $1.50 for a one-way trip.
- Supper money. If you work late, you might "order in" from a local restaurant. The cost of the meal, including any delivery charge and tip, is tax-free if you chow down only occasionally.
Tip: The tax law allows these tax-free benefits even if you own the business.