Gym Membership EVER Deductible?

[Hamacher]

I have a client that is being taxed as an S Corp. He asked if he offered a Gym membership to everyone if he could write it off. I could not find a definitive answer to his question.

Any assistance would be appreciated.

[RitaB]

Everyone

In this answer, "he" means "the company"

If he paid for gym memberships for his employees, that could be deducted as a fringe benefit.

If paid for gym memberships for clients, he could deduct up to $25 per individual.

If he paid for a gym membership for you, I'd say same as #2 if a gift, or entire amount if he was paying for services with that instead of cash.

If he paid for a gym membership for me, he'd get a big "thank you", or maybe "what are you trying to say!?" and that's it.

If his business is a gym, and he's just handing out certificates, he can deduct the ink and paper, or printing service, but not the value of the membership. That's like my beauty shop girls who want to deduct their $10 off coupons. They didn't spend $10, so they can't deduct $10.

[Hamacher]

Thanks...

Yes... he is referring to being able to deduct it as a business expense on his Corporate return. He is asking if he provides it to ALL of his employees if there is anything that would prevent him from writing it ALL off (including his and his wifes).

Thanks again!

[DaveO]

A C-Corp can write off a onsite fitness center open to all employees. If he buys an offsite membership for employees, himself included, he could write if off as compensation as long as it was included on the W-2.

[Hamacher]

A C-Corp can write off a onsite fitness center open to all employees. If he buys an offsite membership for employees, himself included, he could write if off as compensation as long as it was included on the W-2.

This is what I was thinking was the answer. I think he is trying to avoid having it taxable to his employees.

BTW - The tax payer is an S Corp.