Question

Ethan, a bachelor with no immediate family, uses the Pine Shadows Country Club exclusively for his business entertaining. All of Ethan's annual dues for his club membership are deductible.

A) True
B) False

Answer 1

The annual dues for a social club membership are not deductible.

Step-by-step explanation:

The statement is False.

While business expenses are generally tax deductible, membership dues for social clubs like the Pine Shadows Country Club are not deductible. Even if Ethan uses the club exclusively for business entertaining, the dues are considered a personal expense and not a legitimate business expense.

Examples of deductible business expenses could include travel expenses, advertising costs, professional fees, and office supplies.