Is Parking Fees Tax Deductible for Your Business?

Yes, parking fees is generally tax deductible for self-employed individuals, freelancers, and small business owners. The IRS allows you to deduct ordinary and necessary business expenses, and parking fees typically qualifies when used for legitimate business purposes.

Key Rules for Deducting Parking Fees

Parking fees incurred while visiting a client, vendor, or temporary work location are deductible IN ADDITION to the standard mileage rate. Regular commute parking is NOT deductible.

Requirements to Claim This Deduction

• Must be for business travel (client visits, temporary locations)
• Parking at your main office is NOT deductible
• Keep parking receipts

How to Document Parking Fees for Tax Purposes

Proper documentation is critical for any business deduction. For parking fees, you should:

• Keep all receipts and invoices showing the amount paid
• Record the date of the expense and the business purpose
• If mixed-use, maintain a log showing business vs. personal usage
• Store records for at least 3 years (7 years for major purchases)

Source: IRS Publication 463. This information is for educational purposes only. Consult a qualified tax professional for advice specific to your situation.