The term “Death and Taxes” is very old and has all kinds of implications. Two things you can’t avoid – two things that go hand in hand…
So where do “Golf and Taxes” connect? I can think of three situations, just recently, where they relate.
First is an auction where I purchased a round of golf for myself and two others, and the beneficiary of the money I paid was the Mental Health Department at Overlake Hospital. I wrote a check for $1,000 and now I get to take a tax deduction for that amount – correct?
Not so fast! As it turns out, each round of golf is probably a couple hundred dollars, plus you add in the lunch and drinks and it appears I received a thousand dollars worth of golf. If you receive anything for your donation, the value has to be subtracted from the donation.
How do you get a donation at an auction with that kind of rule? The answer is the second situation I was involved in.
I donated a round of golf at Newcastle plus dinner and this was purchased by someone in my Rotary group. The donation will cost me three rounds of golf and the cost of dinner. This total becomes a deduction for me. However, the person who purchased it will be under the same rules in my first example.
And finally, the last example where Golf and Taxes intersect: While playing a round of golf last week, there was a little wagering, and as it turns out, I was the winner of those bets. I immediately recorded those funds in my tax organzier so that I could report them on my upcoming tax filing.
Well, maybe I only have two good examples of where Golf and Taxes come together.
I hope that you golfers out there are taking advantage of basically 70 days of no rain in our area – I feel like I’m in Arizona with all the benefits of the Great Northwest.
Thanks for listening and I will talk at you again.