Is Parking Tickets Tax Deductible for Your Business?

No, parking tickets is generally not tax deductible as a business expense. The IRS considers this a personal expense, even if it has some connection to your work activities. However, there may be limited exceptions in specific circumstances.

Key Rules for Deducting Parking Tickets

Fines and penalties paid to a government for violation of any law are NOT deductible. This includes parking tickets, speeding tickets, and other violations.

How to Document Parking Tickets for Tax Purposes

Proper documentation is critical for any business deduction. For parking tickets, 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: IRC § 162(f). This information is for educational purposes only. Consult a qualified tax professional for advice specific to your situation.