Discussion:Tax Deductibility for Golf Equipment
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Discussion Forum Index --> Tax Questions --> Tax Deductibility for Golf Equipment
| 22 September 2007 | |
| Can a business client deduct golf equipment and golf balls for entertaining their clients? If so, any limitations? I thought they could, but just want to see what other professioanl peers think. Thanks! | |
TheTinCook (talk|edits) said: | 22 September 2007 |
| It depends on how you want to deduct them.
If they are business gifts, then sure you can deduct them subject to the $25 per person per year limit. Put your company's name/logo on the balls, and you can deduct them as gifts not subject to the $25 limit under the "under $4 cost/identical item" rule. Membership dues or greens fees to the club are not deductable as entertainment expenses. You can deduct part of the cost of membership you pay for your clients as a business gift. This is subject to the same $25 per person per year limit for all business gifts. If you maintain golf clubs and other equipment for the purposes of entertaining clients, I think you would be disallowed the deduction under Sec 274(a)(1)(B) and Reg. 1.274-2(e)(2). Things may change if you are in the business of manufacturing and/or selling golf clubs or equipment. Or if you are a doctor and it's a Wednesday. | |
| 22 September 2007 | |
| TinCook's advice is not the kind of advice you hear around the bar in the clubhouse. Which is a reason not to listen to tax advice around the bar in the clubhouse. | |
Tfortaxes@msn.com (talk|edits) said: | 24 September 2007 |
| or.....you could have clubs, balls and other equiptment made with your logo and write it all off as advertising. That way its not entertaining. I hand out flashlites, guitar picks, custom glass all with my name on it. Its advertising...honest, judge thats what my beancounter told me! | |
| 24 September 2007 | |
| I agree with TinCook. I don't know what happened to my answer yesterday.
Gifts are limited to $25.00/person. If the golf balls have your name and logo on them, is can be called advert or business promo. Your personal golf clubs are not deductible. If you purchased them for a client, only $25.00 is deductible. The playing fee can be considered entertainment. It's subject to 50%. | |
