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Can gym memberships be deducted as a business expense...

Posted on 10/14/08 at 9:23 am
Posted by Chicken
Jackassistan
Member since Aug 2003
22046 posts
Posted on 10/14/08 at 9:23 am
for a company? Rebel, of O-T Lounge fame, claims that you can. I thought I had heard that you can't.

Also, what about country clubs for that matter?
Posted by tiger91
In my own little world
Member since Nov 2005
36744 posts
Posted on 10/14/08 at 9:27 am to
I'm no CPA but I would think that you could count it as part of a health benefit or something. And the country club ... well, if you take a client to play I'd bet you could deduct it. ???

By no means should you take my advice!
Posted by Y.A. Tittle
Member since Sep 2003
101667 posts
Posted on 10/14/08 at 9:27 am to
quote:

Can gym memberships be deducted as a business expense...
for a company? Rebel, of O-T Lounge fame, claims that you can. I thought I had heard that you can't.


I think there's a way to tie it into some sort of healthcare deduction/cafeteria plan.

I've heard of a couple of law firms offering it as a fringe type perk, and am pretty sure they are finding a way to deduct it.
Posted by Doc Fenton
New York, NY
Member since Feb 2007
52698 posts
Posted on 10/14/08 at 9:46 am to
I vaguely seem to remember this issue coming up in a class, and I think it might actually matter whether the gym is on the business premises and reserved for employees, as opposed to just being an added perk tied to a separate firm.
Posted by Putty
Member since Oct 2003
25491 posts
Posted on 10/14/08 at 9:53 am to
I think gym has to be on premises for deduction. I'm pretty sure they closed the loop on country club type stuff.

I did well in tax law....but it was open book
Posted by Poodlebrain
Way Right of Rex
Member since Jan 2004
19860 posts
Posted on 10/14/08 at 10:38 am to
A company can deduct the costs of gym memberships for employees as compensation expense. However the value of the membership must be reported as salary or wages paid to the employees. The same applies to country club memberships.

If the company has a gym or workout facility on its business premises the employees can use the workout facility as a nontaxable fringe benefit. The company can deduct the costs of operating the gym/workout facility.

In general an expense can be deducted if it is ordinary and necessary for a particular business. I'm sure there are certain businesses for which employee gym memberships are ordinary and necessary. Those businesses would be able to deduct the costs of employee memberships.
Posted by Powerman
Member since Jan 2004
162258 posts
Posted on 10/14/08 at 4:14 pm to
Hmm I'm signing up for a gym membership today. I'll keep the receipt and see if I can expense it. Never even thought of that.
Posted by Glacierbengal
Montana
Member since Jan 2008
978 posts
Posted on 10/14/08 at 9:48 pm to
Fat >>>>> Muscular
Posted by Cdawg
TigerFred's Living Room
Member since Sep 2003
59610 posts
Posted on 10/15/08 at 10:45 am to
quote:

Rebel, of O-T Lounge fame




quote:

I personally think that a majority of the physical therapy business is just a big racket

I thought this board was void of complete ignorance.

quote:

poodlebrain

faith has been restored.
Posted by 756
Member since Sep 2004
14887 posts
Posted on 10/17/08 at 6:11 am to
You will need a medical certificate from your doc if IRS audits you.

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