Country club dues is not a deductible business expense.
Why it is not deductible
Dues and membership fees in any club organised for business, pleasure, recreation or another social purpose are not deductible, and the rule is written broadly on purpose. Country clubs, golf and athletic clubs, hotel and airline clubs and luncheon clubs are all named. Doing real business at the club does not change the answer, because the test is the club's purpose rather than your use of it. Nothing goes in Part V, and nothing goes anywhere else on the return either.
Log it once, with the line already on it. Type an expense in plain words in ClaryBook and it is filed with a date, vendor, amount and what it was for, so the number your preparer needs for country club dues is already written down.
Start for freeWhat country club dues is confused with
- Line 27a, other expenses
- Dues to an organisation whose purpose is your trade, a professional institute, a trade association, a chamber of commerce or a board of trade, are deductible on line 27a.
- Line 24b, deductible meals
- A meal you buy at the club with a client can still be a deductible meal at the reduced percentage on line 24b even though the dues that got you in the door are not deductible at all.
Examples people try to deduct here
- $6,000 annual country club membership: not deductible
- $1,200 golf club dues for a realtor who meets clients there: not deductible
- $540 airline lounge membership for a consultant who flies weekly: not deductible
- $85 a month gym membership: not deductible
- $140 client lunch bought at the club: deductible as a meal at the reduced percentage
What does not belong here
- Putting the dues in Part V with professional memberships, which is the usual way this gets claimed.
- Splitting the dues by how many rounds were played with clients, since there is no allocation available.
- Treating a club initiation fee as a start-up cost.
- Deducting the membership as advertising because the club directory lists your business.
The limit that applies
The disallowance covers clubs organised for business, pleasure, recreation or other social purpose, including country, golf, athletic, airline, hotel and luncheon clubs.
What to keep
If you buy meals at the club with clients, keep the chit with the guest names and the business purpose so the meal survives on its own facts while the dues stay out of the return.
Other things that are not deductible
| Expense | Line |
|---|---|
| a business suit | Not deductible |
| a government fine or penalty | Not deductible |
| a parking ticket | Not deductible |
| a personal expense on the business card | Not deductible |
| a spouse's airfare on your business trip | Not deductible |
| a traffic ticket | Not deductible |
| an unpaid invoice | Not deductible |
| commuting mileage | Not deductible |
| estimated tax payments | Not deductible |
| federal income tax | Not deductible |
| groceries for your home | Not deductible |
| interest on underpaid federal income tax | Not deductible |
Related lookups
Sources
This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.
Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.
Log it once, with the line already on it. Type an expense in plain words in ClaryBook and it is filed with a date, vendor, amount and what it was for, so the number your preparer needs for country club dues is already written down.
Start for free