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davidahenry
09-28-2008, 07:23 AM
Any accountants or tax preparers out there?

Assuming I run my home stringing business like a legitimate business (LLC filing with Sec. of State, separate bank account for the business, etc., etc.), can I legally deduct expenses associated with being a member of my tennis club? Like initiation fee, annual dues, and court time fees? Here is my logic...

1. I often playtest many new strings at the club. A legitimate and very necessary activity in running a stringing business.
2. Through personal networking and word-of-mouth, the club is a source of new customers for me. Therefore, it is kind of like an advertising expense.

Thoughts on deducting these club related expenses?

Thanks.

Stan
09-28-2008, 07:30 AM
Yes, it is a legitimate deduction. So are things such as league fees, USRSA membership, USTA membership and a whole host of other goodies!

Let me clarify in an attempt not to mislead. I am not an accountant. In re-reading I would like to restate that the above are considered "legitimate business expenses" rather than deductions. Off-course business expenses are used in tax calculation process, but I am not sure they are technically considered tax deductions.

davidahenry
09-28-2008, 07:31 AM
Perfect - thanks for the quick reply Stan. Enjoy the day.

David

alcap26
09-28-2008, 09:01 AM
I would seek out a legit accountants advice.

davidahenry
09-28-2008, 09:26 AM
In re-reading I would like to restate that the above are considered "legitimate business expenses" rather than deductions. Off-course business expenses are used in tax calculation process, but I am not sure they are technically considered tax deductions.

Gotcha. I think we are talking one in the same when referring to legitimate business expenses and deductions. Since they are legit business expenses, they are actually "deducted" from revenue to arrive at net income - which is then the taxed by the IRS.

I'll certainly verify with a CPA, but I appreciate the input.

Take care.