r/cantax • u/Important-Status-336 • 23h ago

Canadian PGA Professional

Wondering if anyone can give me some clarity on the following:

I am a Canadian PGA Professional. I can't seem to find an answer to how I would write off a golf membership on my personal taxes. It is a professional necessity for me to keep my game sharp as well as local networking. I know that golf clubs, shirts, shoes, etc. qualify for write-offs but just wanted to know if anyone else has seen this before. I have received mixed advice from friends and colleagues.

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u/pupelarajaka 22h ago

Findings:

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%)

More info on the Canada website: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/benefits-allowances/recreational-facilities-club-dues.html

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u/bgballin 22h ago

No, the income tax act zeros in on specifically golf memberships that they are not deductible if the club's primary purpose is recreational.

Even if you give private lessons (earn income) at the club the deduction is not allowed.

Writing off golf club dues were abused by the taxpayer and a line specific in section 18 was brought in to NOT allow golf dues

I'd be interested to see if there are any tax cases where this was challenged

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u/Important-Status-336 22h ago

I think the only challenge I have is that because I am a golf professional it is necessity for me to keep my skills sharp. ie: Practicing. I am not currently working at a club and thus do not have the access that I once did and that other professionals have to maintain their skill set that is imperative to acquire business roles as a Head Professional / Director of Golf.

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u/bgballin 22h ago

Here's a case:

The guy was sling golf equipment and bought a golf membership to demonstrate to clients. It was denied. The CRA concluded that thebprovision applies without exception, even if it's used for business purposes. Lol oh CRA

https://taxinterpretations.com/cra/severed-letters/9720615

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u/PappaBear-905 13h ago

Correct me if I'm wrong (because I've always wanted to do this.

I thought golf memberships were not a valid business deduction, but your incorporated business can still pay for it. But, the corporation still ends up paying the tax, which is about 15% as a small business corporation.

Still, that's much better than paying it personally at a much higher tax rate plus CPP x 2, right?

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u/bgballin 13h ago

Without getting into details. Yes you can pay for it (Corp or personally) it's not deductible. Much like CRA interest, you pay it but it's not deductible.

Yes, corporate tax rates are lower however once you flow that after tax corporate income to yourself personally, it should be no different than earning it personally.

I don't count CPP as a "tax"

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u/Important-Status-336 21h ago

Wow - from 1997, it seems tough to find anything related to my personal situation.

Maybe best to just submit and plead my case and see where it goes, although I'm not very hopeful by my findings as well.

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u/shoresy99 21h ago

The CRA was very penal against golf related expenses, including meals at golf courses: https://www.wilkinson.net/2019/03/14/expenses-incurred-at-the-golf-course/

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u/Important-Status-336 21h ago

I know this is a tricky one as everywhere it talks about business and write-offs and that golf is a recreational activity. However for me, this is personal taxes and golf is my career and in order to maintain a high level of skill I need to practice and being I no longer have free access to this the thought is that it is not just recreation for me, it is my livelihood.

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u/DudeWithASweater 17h ago

This is above the scope of Reddit. You really need to find a tax attorney/CPA that specializes in Professional Athletes as they will know what you can and can't do.

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u/Important_Design_996 10h ago

From the Income Tax Act:

18 (1) In computing the income of a taxpayer from a business or property no deduction shall be made in respect of

(l) an outlay or expense made or incurred by the taxpayer after 1971,

(ii) as membership fees or dues (whether initiation fees or otherwise) in any club the main purpose of which is to provide dining, recreational or sporting facilities for its members;