Are Country Club Memberships Tax Deductible?
- Aaron Engleman, Two Teachers' Tax Service
- Feb 17
- 2 min read
In most cases, no.
Under Internal Revenue Code §274, dues paid to clubs organized for business, pleasure, recreation, or social purposes are not deductible. This includes country clubs, golf clubs, athletic clubs, airline clubs, and similar organizations.
This rule applies to self-employed individuals, S corporations, partnerships, and C corporations. There is no entity workaround.
What Is Not Deductible?
Membership dues
Initiation fees
Capital assessments
Entertainment at the club
What May Be Deductible?
Business meals are generally 50% deductible in 2026 if properly documented and directly related to business.
Employee social events (like a holiday party) may be 100% deductible if they meet employee-benefit rules.
Separately billed room rentals for bona fide business events may be deductible.
The key distinction: club membership = nondeductible; business meal = typically 50% deductible.
If I Take a Client Golfing, Is It Deductible?
Generally, no — not the golf itself.
Since the Tax Cuts and Jobs Act, entertainment expenses are 0% deductible. That includes:
Greens fees
Cart fees
Guest fees
Tournament entries
Even if you discuss business the entire time, the golf portion is not deductible.
What About the Meal?
If you take the client to lunch or dinner and the meal is separately stated:
The meal is generally 50% deductible in 2026
Proper documentation is required (who, when, where, business purpose)
Example
Golf & cart: $480 → 0% deductible
Lunch: $150 → 50% deductible
Allowed deduction: $75
Bottom Line
Club dues: 0% deductible
Golf/entertainment: 0% deductible
Business meals: generally 50% deductible
Client entertainment may build relationships — but the tax deduction is usually limited.
Before you assume an expense is deductible, make sure you understand how the rules actually apply to your situation. Entertainment, meals, and club memberships are heavily scrutinized — and small classification mistakes can cost you real money.
If you want clarity on what’s deductible, how to properly document expenses, and how to structure your business spending strategically, contact Two Teachers’ Tax Service today. We help business owners make informed tax decisions — before the IRS makes them for you.
Two Teachers’ Tax Service
269-449-8277