Are Golf Membership Dues Deductable?

[t]

My company wants to purchase a membership to a golf course and wants to know
if this is tax deductable on the company's return, or do we put this in as
additional income to the employees benefitting from the membership.

The golf outings will be used as a socialing for the company's employees and
may (or more probably) will be entertaining clients.

Thanks as always for your advice.

[Paul A. Thomas]

"t" <vid...@verizon.net> wrote

> My company wants to purchase a membership
> to a golf course and wants to know if this is
> tax deductable on the company's return,

Not under "dues & memberships".

> or do we put this in as additional income to
> the employees benefitting from the membership.

It would be deductible if it is considered, reported, and taxed as
compensation to the employee.

> The golf outings will be used as a socialing for the company's employees
> and may (or
> more probably) will be entertaining clients.

The social outings themselves would not be deductible either, but those that
qualify as client entertainment would be (subject to the 50% limits on
deductibility of entertainment).

Same for meals at the clubhouse grill, etc.

Just the dues that are not deductible.

--
Paul A. Thomas, CPA
Athens, Georgia
paultho...@bellsouth.net

[t]

Thanks Paul.

Just to elaborate, how about health club membership fees or volleyball
registration fees for a company team. I always thought they were deductable
(with 50% limitation).

"Paul A. Thomas" <paultho...@bellsouth.net> wrote in message
news:plQ5f.3143$Wk4....@bignews4.bellsouth.net...

[Paul A. Thomas]

"t" <vid...@verizon.net> wrote

> Just to elaborate, how about health club membership fees

Probably not. The business can not take a deduction for any club dues for
pleasure, recreation, or other social purpose.

They can deduct any business clubs (leads referral club, etc).

> or volleyball registration fees for a company team.

Probably as advertising, if the company is a team sponsor.

A team is not a club. No one has a "membership".

> I always thought they were deductable (with 50% limitation).

Nope.

[t]

Thanks again Paul.

"Paul A. Thomas" <paultho...@bellsouth.net> wrote in message

news:dTR5f.649$bV4...@bignews1.bellsouth.net...