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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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If my company joins a Country Club and it is in my name, but

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If my company joins a Country Club and it is in my name, but I must share the benefits with the rest of the company, are the membership fees considered my income?

Hello JA Customer,


Since generally "companies" are not allowed to purchase CC memberships and these memberships instead must be purchased by an individual, that individual can be reimbrused by the company for the cost of the membership dues, if the membership was obtained primarily for use by the company for company functions.


Your income would not be reduced by the amount of the membership fees, but the fess can be reimbursed to you by the company as a reimbursable expense.



Thank you JA Customer



Customer: replied 6 years ago.
In this case the company will pay the fees and dues, and the membership will be in the name of the top manager of the group. We expect 100% of the usage will be for company related activities - customer/vendor/employee/etc. Do we need to issue a 1099?

Hello again JA Customer,


No, you do not need to issue a 1099 form. What I was trying to indicate in my first response is that the employee could not just pay the fees on his own and then have the company reduce his taxable earnings by that same amount. The proper procedure would have been for him to pay the dues and then turn in an expense report for reimbursement.


But as long as the company is paying these fees and dues directly, then nothing else needs to be done. You would not issue him a 1099 form as he would have been entitled to reimbursement of these expenses had he paid them on his own.



Thank you JA customer



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