Rotary Club - Stretch

[Gretel]

I am always unsure if fees and/or donations to the Rotary Club qualify as biz expenses. If so, as what?

The closest I can think of is Advertising. Is this too much of a stretch?

[Jiggers]

Rotary Club, et al......

Are these dues? I would show as business dues as there are usually other business associates present and you probably pick up some business from this club.

Are these meals? Well............not away from home overnight ?........not deductible unless you show that there was business conducted, but you only paid for you meal.

Is this for support of a project or event, such as a golf tournament or other fundraiser? If your business gets recognition for the support, then it is advertising.

Are they selling a product such as fertilizer or lightbulbs that you can use for your office? Then it is supplies.

Are you a Schedule C or 1120/1120S? A corporation could have a requirement that you belong to these type of organizations and will reimburse you for your dues and meals. As a legitimate business expense.

[Gretel]

Thanks, Jiggers, nice comprehensive answer.

In my case it's dues and and a Christmas project with biz recognition. I try to put anything with recognition into Advertising. Don't really remember what my hookup is with the Rotary Club.

[ChEAr$]

Rotary

As i remember, from my days as assistant secretary of local Rotary Club (my father was the secretary and my "position" was ex officio!), members were prohibited from discussing business at meetings. Might still be the case, so need to check on this.

At any rate, Rotary international local clubs are social in nature, just like the Lions or Kiwanis clubs.

No deduction.

[Uncle Sam]

Rotary Club

Having just completed a Presidential term of my Rotary Club - and now Secretary -
(was President of a different Club 10 years ago) - Rotary is a 501(c)(6), not a 501(c)(3) -
only Club dues are tax deductible - as ChEARS stated Nothing else is deductible. No donation deduction, or meals.

[ChEAr$]

Having just completed a Presidential term of my Rotary Club - and now Secretary -
(was President of a different Club 10 years ago) - Rotary is a 501(c)(6), not a 501(c)(3) -
only Club dues are tax deductible - as ChEARS stated Nothing else is deductible. No donation deduction, or meals.

But why would dues be tax deductible?
Is it still the case, as I posted above, that Rotary prohibits discussion of business
at meetings?

[S T]

Professional Dues Deduction Business

From US Master Tax Guide

No deduction is allowed for dues paid to any club organized for business, pleasure,recreation, or other social purposes (Code Sec. 274(a)(3). However, this disallowance does not extend to professional organizations (e.g., bar and accounting associations) or public service organizations (e.g., Kiwanis and Rotary clubs) (see Reg. 1.274-2(a)(2)(iii)(b)).

From IRS pub 529

Dues to Chambers of Commerce and Professional Societies
You may be able to deduct dues paid to professional organizations (such as bar associations and medical associations) and to chambers of commerce and similar organizations, if membership helps you carry out the duties of your job. Similar organizations include:

Boards of trade, Business leagues, Civic or public service organizations, Real estate boards, and Trade associations.

Sandy

[Gretel]

Great find. Thanks, Sandy.