Gym Memberships: Personal Expense or Tax Deduction?
By Joseph Smith, EA, contributor
There are many professions in which a person’s physical fitness is directly proportional to job performance. It would be highly unlikely that an unhealthy police officer could run down a fit and trim thief who was used to running from authorities in the normal course of his activities. It is also unlikely that an unhealthy fireman would be able to carry a victim out of a burning building. Similarly, the physical demands upon the body of an unhealthy health care provider can jeopardize their judgment and their ability to perform through a long, grueling 12-hour shift.
There are other professions where health and fitness are directly proportional to compensation. A professional wrestler, a ballerina, a model and professional sports player require regular attention to diet, muscles and stamina. There are also individual situations where specific physical activity is prescribed by a physician as a part of the rehabilitative process.
In each of these cases, a membership to a health club, gym or similar organization is common. But which of these individuals actually have deductible expenses for these memberships or dues? In the case of Battle vs. Commissioner heard by the U.S. Tax Court in February of 2007, a professional firefighter was denied deductions for a gym membership. The Tax Court cited the fact that the individual's gym memberships would need to be different or in excess of what he would normally deduct for personal expenses for a gym membership. The taxpayer made a very compelling argument that “{his} body is {his} tool.” While that is a valid argument, the IRS and the Tax Court have consistently held that health club and gym memberships are inherently personal expenses. While police forces, hospitals and other organizations are allowed to provide fitness club memberships at free or reduced rates to its employees, deductions for memberships paid by the individual are rarely granted.
When they are granted, it is typically for medical and rehabilitative purposes and are not of such nature that would be common to any individual who frequents a health club or gym. Typically these deductible expenses involve the supervision of a therapist or some expert that provides guidance through the routine.
The take away from this is that your standard gym membership or health club membership is a personal expense and is not deductible. Generally, only expenses of this nature directly related to rehabilitation or medical issues are allowed as a deduction on the tax return.
About the author:
Joseph Smith is an IRS Enrolled Agent and former travel respiratory therapist whose firm (TravelTax LLC) provides tax preparation and audit representation for the mobile professional. He is a regular contributor to HealthcareTraveler, Locum Life and a speaker at the annual Travel Medical Professionals Convention. For more travel nursing tax advice, visit TravelTax.com.
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