Can i deduct professional memberships

If your motivation for joining an organization is primarily for pleasure or for social purposes, those associated membership dues are not deductible. What sorts of entities are regarded as professional organizations? The IRS casts a considerably wide net of qualifying organizations, including not only bar and medical associations and chambers of commerce, but boards of trade, business leagues, civic or public service organizations like the Kiwanis , real estate boards and trade associations.

However, the fraction of membership dues that goes toward lobbying or political activities—even when applicable to your specific line of business—is not considered a deductible expense. Before you deduct the membership dues at your local country club, note that the IRS generally excludes this and most other club memberships for business, pleasure, recreational or social purposes from being deducted as business expenses.

As a general rule, the IRS cites that organizational dues are non-deductible if one of the primary purposes of the organization is to conduct entertainment activities for members or guests, or to provide members or guests with access to entertainment facilities. In addition to country clubs, these non-qualifying organizations include athletic, airline, hotel or luncheon clubs. For the purposes of this deduction, the IRS distinguishes between the self-employed and other employees.

As an employee, your deduction potential is limited to the portion of dues not reimbursed by an employer. However, as a self-employed individual with qualifying membership costs, you can generally fully deduct the dues incurred as itemized deductions.

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