Thinking about setting up a tax-deductible gym for your employees?
That makes a lot of sense. They’ll appreciate the chance to stay fit. And appreciate you for providing a wonderful fringe benefit.
But be careful.
Ever happy to confuse you, the IRS has created two different sets of regulations from two conflicting code sections.
Want to make sure you follow the right IRS regulations and preserve your precious tax deductions? Read my new article titled Tax Tips: Beware: Conflicting IRS Rules for Deducting Your Business Gym—Don’t Use the Wrong Ones!
Three ways our fact-filled article can help you:
- We’ll tell you which regulations to follow. If you find that you’re caught between two sets of regulations, take my advice and follow the rules stated in Section 274 of the tax code. When you do, you’ll be on the right side of the law as you’ll discover when you read the full article.
- You’ll learn how to preserve your gym’s tax deductibility. The fact is, you need employees to make the gym deductible, and once you have them, rank and file employees and their families must use the gym more than the officers, shareholders, and highly-compensated employees. You’ll get all the details when you read the full article.
- We’ll give you a bit of bad news too. Sadly, if you don’t have any employees, you won’t qualify for the tax-free gym fringe benefit. Also, please note that you likely won’t be able to deduct a gym that you use in your home, even if you have a tax-deductible principal office there. All will be explained when you read the full article.