J.K. Lasser's Small Business Taxes 2013: Your Complete Guide to a Better Bottom Line

Dues and Subscriptions

Dues

Certain dues are deductible; others are not. Dues paid to unions are deductible. If you pay dues to professional, business, or civic organizations, they, too, are deductible, as are dues to the following:

• American Bar Association, American Institute of CPAs, American Medical Association, and other professional associations
• Chambers of commerce, business leagues, trade associations, boards of trade, real estate boards, and business lunch clubs
• Civitan, Rotary, Lions, and other civic organizations

However, no deduction is allowed for dues to other types of clubs, such as athletic, sporting, airline, hotel, or other recreational clubs, even though membership is for business.

Subscriptions

The cost of subscriptions to business or professional publications is deductible. However, if you are on the cash basis and prepay subscriptions—that is, your subscription covers a period of more than 1 year—your deduction may be limited to the cost related to 1 year. You can deduct an allocable portion of the subscription cost in each succeeding year.

Example

In January 2012, you pay for a 3-year subscription to a trade magazine. Your total cost is $150. (Assume you are on a calendar year for reporting your income and deductions.) In 2012, you can deduct $50 (one-third of your total cost). In 2013 and again in 2014, you can deduct $50, the remaining portion of your subscription cost.