Can I deduct golf dues and memberships as a business expense?

Generally speaking, golf dues and related memberships paid are not deductible for tax purposes. There is 1 major exception:  

A deduction is allowed if you are an incorporated professional sports agent. The CRA ruling in regards to this is as follows: 

• If you can PROVE to the CRA that the primary beneficiary of the incurred golf expense is the corporation and not yourself, you can deduct it (in this case, there will also be NO taxable benefit to you – the corporate employee)
• The deduction MUST be made by the corporation
• Meals incurred on the golf course can still be written off (50%)

The CRA is very strict on this matter. It is recommended, that unless this is a very material expense, it simply should not be done. If the CRA reviews or audits your file, this matter will be looked upon.

The information provided above corresponds with a tax case ruling in 2007.

ABOUT THE AUTHOR

ALLAN MADAN

CA.CPA.CGA

Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.

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