The membership is a lifetime membership and is in the names of my husband, myself and our two children, not in the business' name. If I take the initial investment and and allocate it over say, 30 years - how do I record the expense to the business since there is no actual expense incurred?
For the monthly payments on the loan, can I make them out of the business account even though it is a personal loan?
Boards of trade.
Chambers of commerce.
Civic or public service organizations.
Professional organizations such as bar associations and medical associations.
Real estate boards.
Even though the description does not specifically mention resorts, I feel comfortable saying that a resort would fall under the description provided.
IRS Pub 535
Please let me know if I canbe of further assistance to you regarding this matter.
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thanks for the reference above. Since having a membership in the club is the only way we can have vacation weeks to sell, it does not seem to be the same type of thing as the clubs referred to in your email. The vacation club is more like a timeshare than a club - does that change your answer?
I am not trying to deduct them as personal deductions. It seems that if the business needs this ownership in order to earn its only income there must be some way for the cost of the ownership to be deductible from the business. would it be different if the business owned the membership rather than us as individuals?
Thanks - we are getting closer. We don't pay membership fees. We purchased a lifetime membership for a one-time fee which gives us the rights to occupy certain vacation properties for unlimited days for our lifetime. We financed this one-time fee over 10 years. So we made a down payment and are financing the balance. I do believe that we will meet the qualifications of rental property as outlined above. So if our LLC passes down income to us as partners, this would be rental income to use and we could deduct eligible rental property expenses against the LLC income when it is passed to us - is this correct?