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The deductibility of dues to golf clubs, boat clubs, flying clubs and similar clubs is an often asked question.
Under the rules established in the last major tax law overhaul this question was clarified. The answer is that any membership dues paid to a club for business, leisure, recreation, country club or other social purposes are 100% non-deductible. There is a provision that they are deductible if shifted to the employee and are included as compensation on an employee’s Form W-2.
While club dues are specifically disallowed, the meals at these locations remain deductible, as long as there is a business purpose. The percentage of deductibility has range from 50% to 100% depending on the year. In 2021 the percentage was set at 100% to encourage a revitalization of the hospitality business after the effect of the Covid shutdown.
Written by John M Matras CPA
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