Every year, you arm yourself with boxing gloves, ready to battle your taxes, wondering what to claim or write off to bring down the mountain of tax bills. If you dig deep enough, you might find surprising write-offs that the IRS would never raise their eyebrow against. It might seem too good to be true, but your gym membership is one of those absurd tax write-offs that you could claim.
Are Gym Memberships Tax Deductible For Businesses?
One of the perks of running a business is that you can write off almost anything, from your taxes, phone bill, limousine, business meals, and more, but it’s almost never enough. Since you love working out and keeping fit, can you write off your gym membership, too?
Generally, the short answer here is no. Gym memberships are not typically tax deductible because they are considered personal expenses. For a business expense to be deductible, it has to tick the box of both ordinary and necessary. Your expenses must be related to your business and not out of the ordinary.
For instance, an oven is a necessary piece of equipment for any baker, but it’s not necessary equipment for a business owner in another field.
Potential Cases For Deducting A Gym Membership
The only exception to writing off your gym membership from your taxes is if it’s required for your business. You can write off your gym membership if you are a:
Personal Trainer: As a personal trainer, it’s your job to help people reach their fitness goals. Since most of the work gets done in the gym, it means that without a gym membership, it might be challenging to meet your client’s needs.
Now, this is where the tricky part comes in. If it’s the same gym you use for your personal training, then it’s best to understand the thin line. Figure out what percentage you are using for your personal training (because the IRS won’t let you deduct that) and what percentage you use for business purposes. This would make it easier to deduct the portion of your expenses used for business as a tax credit.
Bodybuilder
If you are a professional bodybuilder competing in bodybuilding competitions, we both know a gym membership is crucial to your performance. If you need a gym membership to train for competitions, you also might be eligible for a tax write-off. But if you are a bodybuilding coach, you can only write off the portion you used for business purposes.
Actor/Actress
In the entertainment industry, looks play a significant role in people’s careers, which is why keeping up your appearance is considered part of the job. If you need to look fit to prepare for a movie premier or an award ceremony, you might be able to write off the gym membership.
Writing Off Your Gym Membership For Medical Purposes
You should be able to write off your gym membership for medical reasons, right?
Um, no, you can’t.
While you can write off your weight loss activity if you have a medical note from your doctor, it doesn’t mean you can write off your gym membership.
Take Away
While gym memberships aren’t a guaranteed tax write-off for most businesses, potential benefits are depending on your specific circumstances. Consulting with a tax professional and understanding IRS guidelines is crucial. Want to discover more crazy tax bills you might be able to write off? Book a free consultation with the Tax Goddess Team to find out.
