The Bicycle Daily Tax Break Inequality
The Bicycle Daily Tax Break Inequality what can all this really mean when we don’t understand what we might be allowed. Like anything that has the word TAX in it seems that we need an accountant or a lawyer to explain it. We ride bicycles and we enjoy it so much some of us even have the fun to be able to ride to work. For many of you your parking may give you a tax break or the car pool that you are in and sometimes takes you longer than if you just drove yourself.
The thing is there are tax breaks right now that cover riding the bus, car pooling your parking expenses are not on the same plan as bicycling commuting. First off we will mention the obvious that none of the other tax breaks do a thing for pollution and the environment so why offer more incentive to drive than to use a pollution free way of travel. I will talk about what the tax free break is for bicycling commuters in the next blog post. For this post you will get a since that for what all this administration has pushed for green they have not done a thing for bicycle commuters and check out this article and you will see you are reward for using automobiles. Read more at the National Center for Transit Research.
Beginning on January 1, 2012, employers may provide workers with up to $125 per month in tax-free transit and vanpool benefits (this is a decline from $230 per month in 2011). The monthly limitation under Section 132(f)(2)(A) Qualified Transportation Fringe Benefits regarding the aggregate fringe benefit exclusion amount for vanpools (commuter highway vehicles) and transit passes is $125. The monthly limitation under Section 132(f)(2)(B) regarding the fringe benefit exclusion amount for qualified parking is $240 – up from $230 per month in 2011. Commuters can receive both the transit and parking benefits (i.e., up to $365 per month). Employers can allow employees to use pretax dollars to pay for transit passes, vanpool fares and parking but not for bicycle benefits.
I know most bicycle commuters and I am talking majority do not commute by bicycle for any tax break. The do it for the love of cycling and health benefits that t can provide. Some feel strong about the environment and for this reason chose a bicycle over a powered vehicle. The thing is no matter your reason you should still be put on a playing field in the tax realm of things with gas powered vehicles. To me they still reward this and I would be interested in your thoughts on all this. The Bicycle Daily would be interested in your remarks and tell me if I am seeing this right or in left filed.