Tim is the vice president of western operations for Maroon Oil Company and is stationed in San Francisco. He is required to live in an employer-owned home, which is three blocks from his company office. The company-provided home is equipped with high-speed Internet access and several telephone lines. Tim receives telephone calls and e-mails that require immediate attention any time of day or night because the company's business is spread all over the world. A full-time administrative assistant resides in the house to assist Tim with the urgent business matters. Tim often uses the home for entertaining customers, suppliers, and employees. The fair market value of comparable housing is $9,000 per month. Tim is also provided with free parking at his company's office. The value of the parking is $350 per month.
The amount associated with the free parking that Tim must include in his gross income per month is?

I will assume that this question takes place during the current year (2020). An employee is required to include as income all transportation benefits that exceed $270 per month. In this case, free parking is considered a transportation benefit and Tim must report $350 - $270 = $80 as taxable benefits. The exclusion amount varies depending on the year, e.g. it was $265 in 2019.

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andromache andromache · Answer 2 · 2022-03-15T14:14:49+01:00

The amount that should be included in the gross income per month should be $80.

Calculation of the amount:

The employee should needed to involved the income in terms of transportation benefits that should be more than $270 per month. Since the free parking should be considered as the transportation benefit

So here the amount associated should be

= $350 - $270

= $80

hence, The amount that should be included in the gross income per month should be $80.

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