General Cycling Discussion - Shouldn't bikes be tax deductible as well?!

It just occurred to me... When we file taxes there are questions where you are asked:

Did you have some home improvement where it benefits the environment?
Do you own a hybrid?

I think it should have a question if you own a bicycle and ride it to work?!

Just saying...

Only IF they are part of your business overhead equipment.

I have shoes, and I sometimes walk to work. Do I get to deduct those too?

Nah, I don't think that would work so well. It would be nice though...

Silly rabbit... bikes are just toys!

It just occurred to me... When we file taxes there are questions where you are asked:

Did you have some home improvement where it benefits the environment?
Do you own a hybrid?

I think it should have a question if you own a bicycle and ride it to work?!

Just saying...

Nope. The tax code is already ridiculously complicated enough, without adding in even more exceptions.

I'm pretty sure you can get your own set of exceptions written into the tax code, if you contribute to a congressman's successful campaign.

I believe shoes are deductible if they're required for work - such as hardtoe work boots. If it's something required in your work. Ask a competent CPA. Not just a bookkeeper, but a real CPA.

While my bike isn't absolutely necessary in my performance of my job as a marina general manager, I do use it in traveling around between the office, the docks, the store, dry storage, etc. with panniers and laptop computer and papers. I think there's an allowance for bike repairs and parts, but not much for gas...

A bicycle can be used as a tool in your work. Take for example a bicycle messenger service.

People have run for political office to advance worse priorities..

Here's one way: (Univ of California)

Bicycle Commuting Tax Credit – update March 2009

Charlotte Strem, Acting Director Physical and Environmental Planning, UC Office of the President

UC appreciates the dedicated and environmentally conscious faculty and staff who commute to
work by bike. We were excited to learn about the federal tax credit passed by the legislature last
fall, and immediately investigated whether and how UC could use this tax credit.

The federal tax credit is designed for employers to administer, and because UC does not pay
federal taxes, unfortunately UC cannot use the federal tax credit as it is currently structured. We
continue to monitor legislation in this area, and there is proposed legislation this year which may
resolve this barrier.

UC is still exploring ways to encourage employee bike commuting. It reduces our GHG
emissions, reduces our traffic impact on local intersections, and reduces the need to construct
parking structures. In order to determine the financial feasibility of any bike commute support,
we need a better estimate of the number of employees who commute by bike. If you are a UC
employee who commutes by bike, please contact the Transportation office at your campus to
register as a bike commuter.

The law

The Emergency Economic Stabilization Act of 2008 Section 211 included a provision to add “qualified bicycle
commuting reimbursements”

Internal Revenue Code §132(f)(1)(D), as amended by the Emergency Economic Stabilization Act of 2008,
Section 211

The Emergency Economic Stabilization Act of 2008 includes a provision that, effective for tax years beginning after
Dec. 31, 2008, adds “qualified bicycle commuting reimbursements” to the list of qualified transportation fringe
benefits that are not included in taxable wages.

IRC §132(f)(5)(F)(i) defines a “qualified bicycle commuting reimbursement” for any calendar year, as any employer
reimbursement during the 15-month period beginning with the first day of the calendar year for reasonable expenses
incurred by the employee during that calendar year for the cost of a bicycle, bicycle improvements, repairs, and
storage. The bicycle must be regularly used for travel between the employee's residence and place of employment.

(ii) Applicable Annual Limitation – the term Applicable Annual Limitation mean, with respect to any employee for
any calendar year, the product of $20 multiplied by the number of qualified bicycle commuting months during such
year.

(iii) Qualified bicycle commuting month – the term “qualified bicycle commuting month” means, with respect to
any employee, any month during which such employee –

(I) regularly uses the bicycle for a substantial portion of the travel between the employee’s residence and
place of employment, and

(II) does not receive any other transportation fringe benefit.

G:\PD\Sustainability\Sustainable Transportation\Bike Commute Tax credit\Bicycle Commuting Tax Credit 3 09 update.doc

They are in Ireland up to a value of €1,000. That's about US$1,350.

http://www.bikescheme.ie/

If you are an independent business owner of a bike messenger service, it is a part of your
tools to conduct your business's business .
not as applicable if, say, an employee of a bike messenger company .

[anyone know from doing Pizza delivery which required you to use
your own car?, taken depreciation, fuel, maintainence, cost's, etc]

the Irish scheme is the result of the actions of citizens working together
to achieve a change to the tax code, there.

wow, so many different reactions! this is great! :D

You can deduct anything as long as you don't get audited.

There is a bicycle commuter benefit up to $20 per month if your employer offers it. My employer already informed me that they would not pursue it because the administrative costs would be too high. And yet, they will subsidize use of public transit and van pools up 100% or $270 (or whatever the IRS limit is) per month whichever is less.

I can't help but say it's a ****ty program when my co-work gets a subsidy for commuting 120 mi each way by van pool 3 to 4 days a week. Employer only requires they use public transit for a majority of their commute for them to receive the subsidy.

[QUOTE=fietsbob;12642122].

[anyone know from doing Pizza delivery which required you to use
your own car?, taken depreciation, fuel, maintainence, cost's, etc]
QUOTE]

You just take 1040 and probably Schedule C for business use of personal auto. Anyhow, you can do it though maybe not Schedule C. I think you have the option of itemizing fuel, insurance, and depreciation or taking a standard per mile deduction. Keep good records and keep them for a minimum of three years. Be aware that depreciation lowers the cost basis of the car when you sell it.

ETA: That's three years from the time you dispose of the asset, by the way. I wouldn't consider it with a bike unless it were high dollar and it were exclusively in business use.