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Business travel entails a lot of costs that arise in the process of getting to the destination and back. Taxes, tips, visa and passport fees, car rentals, and lodging and meals are normally common business travel expenses that you can write off to your company. But what about parking at the airport when you are on a business trip? Could those costs be considered as traveling expense too?

The answer is yes – parking at the airport when traveling for business purposes is indeed a qualified travel expense according to the IRS. Here's what you need to know about expensing airport parking costs:Here's what you need to know about expensing airport parking costs:

What expenses for airport parking are allowable business travel expenses?

Hourly or daily parking at the airport that is necessary for short-term stay, as well as off airport economy parking for the period of your business trip is also considered as deductible. This includes expenses like:

• Hourly parking for departing/ picking up rental cars at the airport
  
• Daily parking rates if you own your car and you decide to drive it to the airport for a particular journey
  
• Short-term or daily, weekly/monthly economy or long-term parking in case you leave your car at the airport during the trip.
  
• Car park charges in airport
  
• Valet parking at the airport (if this service is the only one offered).

In other words, the amount of money spent on parking at the airport while conducting business during business trips can be incurred.

Proving Your Airplane Parking Costs

Just like other expenses you want to offset, it’s important to keep copies of the receipts and documents of your airport parking. This includes receipts for:

• Parking meters/pay stations if paying hourly rates
  
• Receipts for the parking garage displaying daily/ weekly/ monthly charges made
  
• Receipts for the parking fees which were charged on credit cards
  
• Valet stub with fees to be paid for parking.

This is very important for tax purposes as well as for business travel expenses you need to reclaim from your employer.

If you end up losing the receipts, attempt to recreate the expense by writing down the date that you traveled, the rate of parking during that date, the location of parking, the total number to provide evidence of the parking expenses.

Reporting Airport Parking Costs

For claiming tax deductions on annual tax returns: Record airport parking (and any other travel costs incurred in the course of performing one’s job) on Form 2106 as part of miscellaneous business expense deduction. This form is to be filled and filed with your annual 1040 tax return form.

For getting reimbursed by your employer: Return the parking receipts and any supporting documents to your employer through the company’s expense claim procedures. It is important to indicate which trip the parking fees are associated with in compliance with any allowable travel expenses.

Commuting and Travel Vs. Parking Charges

Just one thing to remember—the IRS distinguishes between the transportation expenses of ordinary commuting and those of temporary business travel.

Costs incurred in travelling to and from your normal workplace on a daily or frequent basis are NOT allowable deductions. However, expenses to transport you to a temporary work station such as an airport for a business trip is allowed.

Therefore, if you park at the airport regularly in your daily schedule going to your workplace, then the cost of parking cannot be claimed even you use the car once in a while for business purposes. However, parking that is associated with days of business travel in relation to business-related matters is deductible from business travel costs.

To sum up—yes, the fees for parking at the airport when an employee is at business trip is indeed a deductible travel expense. Make sure to keep receipts for parking and other necessary items as supporting evidence to justify the expenses made and categorize it under the traveling allowance. Noting airport parking demonstrates the level of scrutiny required when tracking and documenting every allowable business expense.

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