Tax trimming tip worth repeating: Bike to work

Tue December 09 2008
Posted Dec 9, 2008
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Posted by By Brent Hunsberger, It's Only Money Blog Stephanie Yao/The Oregonian Tim Forsberg commutes to work by bike in Portland in 2004.I mentioned this in Sunday's column, but it bears repeating in this town. Starting next year, you can get cash back for biking to work, and your boss can get a tax break. Under language buried in October's Wall Street bailout bill, employers can deduct from their taxes a monthly benefit given to workers who commute regularly by bicycle. The IRS limits the reimbursement to $20 a month. Only workers who use a bike for "a substantial portion of the travel" between home and work are eligible for the benefit. Workers must use the money for bicycle purchases, repair, maintenance or storage. Bottom line: If you're a regular in the saddle, you might steer your employer to this perk.