Tuesday, January 15, 2013

*** BUSINESS EXPENSES (CLUB DUES)

CLUB DUES; Amounts paid to or incurred for membership in any club organized for business, pleasure, recreation, or any other social purpose are not deductible [IRC Ss274(a)(3)]. Examples includes country clubs, golf and athletic clubs, hotel clubs, sporting clubs, airline clubs, and clubs operated to provide meals under circumstances generally considered to be c...onducive to business discussions. Exceptions: Board of trade, business leagues, chambers of commerce, civic or public service organizations, professional organizations, such as bar and medical associations, real estate boards, and trade organizations are not treated as subject to the nondeductible club dues rule, unless their main purpose is to conduct entertainment activities for members and their guest.

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