How to Make Club Memberships Tax Deductible. With income taxes at high rates, it makes sense to take every single deduction for which you qualify. On the other hand, you don't want to cross the line and make IRS officials suspicious, resulting in a tax audit. The best way to achieve that happy medium, of course, is to find out what is tax deductible and what isn't before you ever complete and file your taxes. One of the fine lines that seems to blur gray concerns the issues surrounding club memberships. Read on to learn more.
Hire a tax professional, such a tax advisor, consultant or attorney, or a certified public accountant (CPA). Doing your own research is important, of course, but no amount of reading can substitute for a qualified professional's advice and counsel.
Figure out what kind of a club you belong to. Professional, educational, charitable, and religious organizations are possibilities for tax-deductible club memberships.
Pay for your club membership. The best way to do this is with a check, so that you will have the return check as a backup receipt.
Get a receipt or a thank you letter from the club, stating the amount and date of your donation. Keep this for your records, with your tax return.
You can only deduct your club membership to a charitable organization if you have not received any goods or services in return for your donation/club membership dues.