gym/athletic memberships

[dusty15]

I know that the IRS does not allow deductions to a corporation for gym memberships as such.

But was wondering if a company could pay for gym memberships for its employees as a fringe benefit, though.

The company would deduct the cost, but the employee would have the amount included in his income. Would this be a correct way to handle?

[DaveO]

Depends on the corporation

A "C" corp can provide on-site fitness facilities which are deductible to the corporation and the use of which doesn't consititute income to the employee. I really can't see how the payment of gym memberships to a seperate facility could be other than income, unless the use of the gym was a condition of employment.

[KJ Judd]

I found a sole proprietor who was doing this for his employees. I came to the same conclusion as DaveO. This is not deductible on the business return. (I discovered in October & wasn't about to amend W-2s to include as income.)