Tax Tips for Higher Education
The “Parking Tax” May be Eliminated for Your Institution
Until March 31, 2019, taxpayers that have reserved employee spots as defined in this notice may change their parking arrangements (changing signage, access, etc.) to decrease or eliminate their reserved employee spots and treat those parking spots as not reserved employee spots for purposes of this notice retroactively to January 1, 2018.
Guidance Released on “Parking Tax”
ISSUE: As Congress continues to talk repeal, IRS and Treasury release interim guidance on I.R.C. Section 512(a)(7). How will this guidance affect Bible Colleges and Seminaries? SITUATION: Denali Christian College (DCC) is a private college exempt under Internal Revenue Code section 501(c)(3) and 170(b)(1)(A)(ii). They are required to file Form 990 annually. The new “Parking Tax” (Section 512(a)(7)) guidance in Notice 2018-99 features:
The “Parking Tax” Will Be Repealed**
It looks like the infamous “Parking Tax” in Internal Revenue Code Section 512(a)(7) is positioned by be repealed by Congress… film at 11. (**Barring any political shenanigans.)
Donor Receipting – Is Email Okay?
Historically, SCC has received a healthy percentage of their annual charitable contributions at the end of the calendar year. They are contemplating methods of streamlining and gaining efficiencies with their donor receipting process. Their CFO calls us to ask whether “email donor receipts” are acceptable with the IRS.
We tell them that new regulations – promulgated in 2018, updating the rules based upon the 2017 “Tax Cuts and Jobs Act” – state clearly that “written communication” for purposes of substantiating charitable contributions, “includes email.”
Holiday Turkeys, Etc.
You CAN give holiday gifts – including turkeys and/or hams – to employees. However, you should be aware of several issues that could make holiday gifts taxable – thus includable in your employees’ Form W-2.