Originally Posted by QuietLion
I read the publication. The text in question is under entertainment expenses. If I use the club to hook up to the Internet and do work I can't see how it could be disallowed as a business deduction if it were brought to court.
QL [emphasis added]
Deductions for "entertainment expenses" are but a subset of "business deductions," as personal expenses are never deductible. In fact, however, airline club membership fees would be deductible by solo travelers under the Internal Revenue Code -- if not prohibited by binding Treasury Regulations -- as
business travel expenses, not business entertainment expenses.
People who visit airports to get work done in lounges when not traveling, however, should consult their own tax and psychiatric professionals.
In general, such lounges are used for business purposes solely while travelling. I am not undertaking to give legal or tax advice to those who merely meet other travellers in their home airport's lounge.
Treasury Regulation 1.274-2(a)(2)(iii)(
a) [26 C.F.R. § 1.274-2(a)(2)(iii)(
a)] is crystal clear in barring deductibility of airline club membership fees as a business travel expense under any circumstances:
http://a257.g.akamaitech.net/7/257/2...cfr1.274-2.pdf
Expenditures paid or incurred after December 31, 1993, with respect to a club—(a) In general. No deduction otherwise allowable under chapter 1 of the Internal Revenue Code shall be allowed for amounts paid or incurred after December 31, 1993, for membership in any club organized for business, pleasure, recreation, or other social purpose. The purposes and activities of a club, and not its name, determine whether it is organized for business, pleasure, recreation, or other social purpose. Clubs organized for business, pleasure, recreation, or other social purpose include any membership organization if a principal purpose of the organization is to conduct entertainment activities for members of the organization or their guests or to provide members or their guests with access to entertainment facilities within the meaning of paragraph (e)(2) of this section. Clubs organized for business, pleasure, recreation, or other social purpose include, but are not limited to, country clubs, golf and athletic clubs, airline clubs, hotel clubs, and clubs operated to provide meals under circumstances generally considered to be conducive to business discussion.
Treas. Reg. 1.274-2(a)(2)(iii)(
a).
The argument that this Treasury Regulation, like the IRS publication based on this regulation, focuses exclusively on "entertainment" is a legally frivolous one. While the subsection heading is indeed "(a) General rules—(1) Entertainment activity," Section 1.274-2 is entitled "§ 1.274–2
Disallowance of deductions for certain expenses for entertainment, amusement, recreation, or
travel."
Of course, if anyone here is sufficiently rich (or contumacious, greedy, rebellious, stubborn, or reckless) to make a federal case of it, or just likes to cheat the system, have at it. With diligent searching, one may actually find a competent tax professional to take this position for you (or at least ameliorate the consequences of your attempted fraud), and through such advocacy, occasional changes to the system are made.
In my view, however, the likelihood of success would be greater trying to lobby Congress or the IRS.
The usual disclaimers apply. I am not undertaking to give legal or tax advice to anyone reading this thread. You should consult your own professional for such matters.