Q:

Subject: country club

Kerry- I asked my accountant whether a Country Club membership and/or dues could be partially deductible if used for business purposes. He gave me a definite "no". I figured I better get a second opinion and since you are "The Guru" and seem to know your stuff, I though I might pose the same question to you. I figure a lot of politicians in Washington probably belong to clubs and they like to look out for their own. Thanks for a great site and you informative opinions.

A:

The dues for country clubs are specifically not allowed to be deducted. 

However, the direct costs of meals and green fees incurred at the country club while entertaining someone else can be deducted, as long as they meet the normal tests for deductibility.

Regarding politicians, it has been my experience that most of them allow their campaign contributors and lobbyists to pay for their country club dues and related expenses.  Some people would consider such payments to be forms of bribes; but that is how our rulers do business.

Those other parties then bury those costs among other expense categories on their books, so that they end up getting to deduct their full costs.

Kerry Kerstetter 

 

- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 7/31/2005 04:36:00 PM Send this post: