I have an S-corporation and I'm the sole shareholder. Can I write off my gym membership as part of a wellness program/employee benefit? I also pay for my employee's gym membership.

asked 01 Dec '10, 04:39

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Marlene
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edited 02 Dec '10, 03:40

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The gym has to be owned by the employer, operated by the employer, and the employees have to be the one's who substantially use the gym. If these criteria are not met, the gym membership is taxable income to the employees as a fringe benefit under Code Section 132(j)(4).

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answered 01 Dec '10, 20:16

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Franklyn
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The only exception to this I've seen is if the business is engaged in some sort of physical activity that requires physical training. For example, I have survived examination on deducting gym memberships for professional athletes.

(13 Dec '10, 20:48) EAgent

If you are asking as an S-corporation owner paying for the employees, "yes" you can deduct the cost of a gym membership. However, if it is not structured properly, it would be taxable to the employees as W-2 compensation. You would need to make a decision on whether you would gross them up or make them whole on the tax.

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answered 10 Jun '11, 16:59

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Asked: 01 Dec '10, 04:39

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Last updated: 10 Jun '11, 16:59