Tax season is almost upon us, and our minds are on the green—both our money and how we can get another round of golf in. There are still some tax breaks available that directly relate to our sport, as well as some potentially overlooked deductions that may help you save money so you can afford more time on the fairway.
Although the Tax Cuts and Jobs Act of 2017 eliminated the deduction for entertainment expenses—and therefore you can no longer deduct golf club memberships, fees or dues—if you have a business or are self-employed filing Schedule C, remember that you can still deduct 50% of the cost of business meals held at a golf venue. Just make sure you can prove that the meal is for business purposes, and isn’t “lavish or extravagant.”
Similarly, although the 100% business deduction is gone for charity golf events, you can still deduct part of your entry fees. The golf charity venue just needs to provide you with a receipt that shows how much the charity realized from your donation after deducting its costs for green fees, food, drink, and/or prizes and the like. Your follow through will be some accounting entries needed to document the tax-deductible portion of your payment, depending on the structure of your business (Schedule C, S-Corp, LLC, etc.)
Some of the other potential tax deductions you may want to explore can potentially benefit your personal tax return. These include health savings account contributions, accounting fees, mortgage interest, claiming elderly parents as dependents, student loan interest payments, education expenses, traditional IRA contributions and more.
Making money is important, but keeping it is critical. Just like working with a golf pro can help you reduce your golf handicap, working with a team of pros can reduce your tax burden. Both a CPA and a qualified financial advisor are recommended to help you save money on taxes now, and create a plan to mitigate taxes in the future. There are no mulligans when it comes to your finances.
For more information about how to tee up a plan to fund your life’s passions, hobbies and long-term dreams, contact Scarlet Oak Financial Services at 800.871.1219 or contact us here.
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This article originally appears in Golf Central Magazine : Volume 20, Issue 10, page 68 on 02/22/20. Golf Central Magazine is The Southeast’s Turf, Travel, Philanthropy, and Lifestyle Magazine. Check out their website, Facebook, and Twitter. Golf Central Can be contacted at (321) 765-7550 or info@golfcentralmag.com.
