This Week's LessonWeek of November 4
This week we turn our attention to club dues. Start by completing the following quiz. Then review the Executive Summary for the key points on this topic, or read the Weekly Lesson for a complete discussion of this topic.
Pastor Steve is the senior pastor of his church. He would like to join a local golf club in order to meet other members of the community and promote the ministries of the church. He asks the church business administrator if the church can pay the cost of the golf club membership without reporting it as taxable income.
Instructions Click on the correct answer for each of the following questions.
Dues paid to clubs organized for business, pleasure, recreation, or social purposes cannot be claimed as a business expense, except for dues paid to professional organizations such as bar associations and medical associations, and civic or public service organizations such as Kiwanis, Lions, and Rotary unless one of the main purposes is to conduct entertainment activities for members and their guests or to provide members and their guests with access to entertainment facilities. The treatment of club dues for tax purposes is the subject of this week's lesson.