Not the standard "Health Club" question... :-)

#3 08-05-2004, 08:28 PM

- quote -

> What way can my S-Corp (My wife and I are the only
> employees) do something similar?

As an S-Corp, fringe benefits are not deductible for more
then 2% stockholders. You need to be a C Corp to get those
benefits.

Bruce Raskin, CPA
braskincpa[at]aol.com
Small Business and Individual Tax and Accouting Services

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#2 08-05-2004, 06:53 PM

- quote -

> My friend works for a small company and the company provides
> as a benefit to all it's employees $100/hr month that he can
> use for whatever "health" related thing he wants to do. So
> he pays $40 for a Gym and he gets a $60 massage each month.
> I *assume* the company he is working for is able to deduct
> this expense and I don't think it's being reported as income
> to him.

Twice I had a gym benefit. It was both reported and taxed.

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#1 08-04-2004, 05:35 AM

"John" <johnfofawn[at]hotmail.com> wrote:

- quote -

> I've read enough of this group to see that the question of
> whether health club membership/fees/dues are deductible. I
> understand that unless it's prescribed by a doctor, they are
> not deductible on a personal tax return.
> My friend works for a small company and the company provides
> as a benefit to all it's employees $100/hr month that he can
> use for whatever "health" related thing he wants to do. So
> he pays $40 for a Gym and he gets a $60 massage each month.
> I *assume* the company he is working for is able to deduct
> this expense and I don't think it's being reported as income
> to him.
> Assuming the company is deducting the expense, what category
> does this expense fall in? Is there some sort of "health and
> wellness" program that a company can have for its employees?
> What way can my S-Corp (My wife and I are the only
> employees) do something similar?

The account used for this situation a lot of times is
Employee Benefits.

Wayne Brasch, CPA, M. S. Taxation

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08-04-2004, 05:35 AM

John wrote:

- quote -

> I've read enough of this group to see that the question of
> whether health club membership/fees/dues are deductible. I
> understand that unless it's prescribed by a doctor, they are
> not deductible on a personal tax return.
> My friend works for a small company and the company provides
> as a benefit to all it's employees $100/hr month that he can
> use for whatever "health" related thing he wants to do. So
> he pays $40 for a Gym and he gets a $60 massage each month.
> I *assume* the company he is working for is able to deduct
> this expense and I don't think it's being reported as income
> to him.

I would assume it IS being reported as income -- or
should be. Check the pay stubs.

Don't assume. Ask.

Don't assume that massages are NOT deductible, either.
Some are, some aren't. It has to be for a medical
condition, not necessarily prescribed by a doctor.

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#-1 07-31-2004, 07:27 AM

I've read enough of this group to see that the question of
whether health club membership/fees/dues are deductible. I
understand that unless it's prescribed by a doctor, they are
not deductible on a personal tax return.

My friend works for a small company and the company provides
as a benefit to all it's employees $100/hr month that he can
use for whatever "health" related thing he wants to do. So
he pays $40 for a Gym and he gets a $60 massage each month.
I *assume* the company he is working for is able to deduct
this expense and I don't think it's being reported as income
to him.

Assuming the company is deducting the expense, what category
does this expense fall in? Is there some sort of "health and
wellness" program that a company can have for its employees?

What way can my S-Corp (My wife and I are the only
employees) do something similar?

Thanks!
John

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

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