a Sift Media publication
Over 23,000 pages of accounting passion and insight!   |   Sift Media logo

Parking tickets on business time

Hello and I hope someone can help.

I know that parking tickets are not a deduction that can be taken on a tax return. However, my client recevied a ticket while at a business meeting. He wanted to know if the company can pay this for him. We do not have a policy in place that says we can or can not.
If we pay this through the company how would I booked that item?

I am very new to this so please be kind in your answer.

Thanks in advance.

Tammy Garrett, Bookkeeper, Colorado



Agree With Rebecca

Dear Tammy,

I wouldn't start down that path. While they may be a client--they seem to be stretching the client-accountant relationship---paying for a non business related expense sends the wrong message, don't you think? In addition, there is no need to establish a policy since no one with a reasonable perspective would ask that you pay their parking ticket. Would you ask your employer to pay one for you if you were on a business trip? I know my boss would laugh. Validating a parking stub and paying a parking violation are two completely different things. Shame on your client! David

Don't pay for parking tickets!

A parking ticket is recieved because someone broke the law. Would you pay for a DUI ticket?

That said, if you must pay for a parking ticket, charge it to the same place you would charge a "parking fee" or fuel reimbursement.

Welcome Visitor!
Sign up for the Weekly Insight newsletter to stay informed of future content in this category.
Email:
Already have an account? Sign in:
Forgotten your password?
Join us FB Connect with us LI Follow us
Voice of the Editor
Amidst a certain amount of controversy, the AICPA and the Chartered Institute of Management Accountants have launched a new designation for global management accountants, the CGMA (Chartered Global Management Accountant). The designation is available to members of both organizations.
Read more >>

Gail Perry, CPA
Editor-in-Chief, AccountingWEB
editor@accountingweb.com