Former country club accountant here - the "non-profit" designation for country clubs is typically under 501(c)(7) as a social club, which is different from charitable non-profits. These clubs don't pay federal income tax on membership dues and fees from members, but they do pay tax on income from non-members and investment income. This status has zero effect on whether members can deduct their expenses. The tax implications only apply to the club itself, not the members. The confusion probably comes from people mixing up different types of non-profits and thinking all non-profit activities are somehow tax deductible.

As someone who works in tax preparation, I see this misconception constantly. People think that because they're spending money at a "non-profit" organization, it somehow makes their personal expenses deductible. That's absolutely not how it works. The key thing to understand is that business expense deductions are based on the PURPOSE of the expense, not the tax status of where you spend the money. You could spend money at a for-profit restaurant for a legitimate business meal and deduct 50% of it, or you could spend money at a non-profit country club for a personal dinner and deduct 0% of it. What really concerns me about your post is hearing members "openly joke" about calling everything a business meeting. The IRS has sophisticated data analysis tools that flag patterns of entertainment expenses, especially when they're consistently high amounts at the same venues. These members might think they're being clever, but they're actually creating a paper trail that screams "audit me." The documentation requirements for business meals are very specific - you need to record who attended, what business was discussed, when and where it occurred, and the business relationship of the people involved. "Had dinner with Bob" isn't going to cut it if the IRS comes knocking.

Just wanted to add another option that might be helpful - if you're dealing with correspondence from the IRS that requires immediate attention, you can also visit the Cleveland Public Library's main branch downtown. They have IRS forms available and free tax preparation software that you can use to print documents or forms you might need for your appointment. It's at 325 Superior Ave E, just a few blocks from the IRS office, so you could potentially handle both in one trip. They also have private computer stations where you can access your IRS online account securely if you need to check your tax transcript or account status before your appointment. The librarians there are pretty knowledgeable about directing people to tax resources, and it's free unlike some of the downtown print shops. Plus, if you end up having to wait for an IRS appointment, you could use that time productively to organize your documents or research your specific tax situation using their resources.

I completely feel your pain about navigating the IRS system - it really can feel like an impossible maze sometimes! As someone who's dealt with similar tax complications, I'd strongly recommend calling that Armed Forces Tax Council hotline (1-877-645-8293) that Zoe mentioned before scheduling an in-person appointment. Military families have access to specialized tax assistance that most people don't know about, and they understand the unique challenges of PCS moves and multi-state filing requirements. I had a friend who avoided a lengthy downtown appointment entirely by getting her military tax situation resolved through their phone consultation service. They can often handle complex military tax issues remotely and might save you the hassle of dealing with Cleveland's appointment backlog. Plus, if they determine you do need an in-person visit, they can provide specific guidance on exactly what documents to bring and which type of IRS assistance you actually need. Worth a try before going through the downtown office appointment process!

Has anyone successfully got these R&D expenses classified as "supplies" instead? My accountant mentioned this might be possible but wasn't sure. I heard supplies can still be fully deducted in the year purchased.

I feel your pain on this R&D capitalization mess! I'm running a similar technical consulting business (around $380k revenue) and have been wrestling with these same issues since 2022. One thing that's helped me is getting really granular about tracking the PURPOSE of each expense. I now maintain separate categories for: - Pure R&D (prototype development, experimental testing) - these unfortunately have to be capitalized - Business development activities (market research, competitive analysis) - often deductible as regular business expenses - Dual-use items (equipment/software used for both client work AND R&D) - can be allocated proportionally The key is documentation. I track time logs showing what percentage of equipment usage is for R&D vs. regular business operations. For software licenses, I document which projects they're used for and allocate costs accordingly. Also, consider the timing of when you actually START formal R&D activities. Some preliminary research and feasibility studies might not qualify as Section 174 R&D if they're general market exploration rather than specific product development. The cash flow impact is real though. I've had to get more strategic about when I make larger R&D investments to smooth out the tax burden over time. It's frustrating but manageable with proper planning.

Be careful about focusing too much on trying to convert passive to active. The IRS heavily scrutinizes attempts to recharacterize income/losses, especially with real estate. Have you considered other strategies? If you have passive income from other sources (other rental properties, certain investments), you could use these passive losses to offset that income regardless of the $25k limitation. Also, depreciation recapture will eventually come into play when you sell your interest. Sometimes having suspended passive losses can be beneficial for your overall tax strategy if properly planned.

I've been through this exact scenario with multiple syndication investments. The harsh reality is that the 10% ownership threshold you're thinking of doesn't apply to real estate syndications the way you're imagining. Even if you could negotiate your way to exactly 10% ownership, syndication operating agreements are specifically designed to prevent limited partners from materially participating regardless of ownership percentage. The syndicator needs to maintain control, and your limited partner status means you're contractually prohibited from involvement in day-to-day operations. I learned this the hard way after trying to restructure one of my investments. The key insight is that passive losses in syndications aren't necessarily "bad" - they're suspended and carried forward. When you eventually sell your interest, those accumulated losses can offset the gain, potentially saving you significant taxes on depreciation recapture. Instead of trying to convert to active treatment, consider building a portfolio of passive income sources (other rentals, certain business interests) that these losses can offset. The tax code actually works in your favor if you plan strategically rather than fighting the passive classification.

I've been through this same frustrating experience with Pathward for the past two tax seasons. What really bothers me is the lack of transparency - they could easily communicate their exact posting schedule on their website or app, but instead customers have to call and wait on hold just to get basic information about when their own money will be available. I've noticed that Pathward tends to be very conservative with all their deposit policies, not just tax refunds. For anyone dealing with this in the future, I'd recommend setting up account alerts so you get notified the moment the funds hit at 3 AM rather than checking manually throughout the day. Also worth noting that if you're planning any automatic payments or bills for the 28th, make sure they're scheduled for later in the day since that 3 AM posting time means early morning transactions might not clear if they try to process before the deposit posts.

I'm experiencing this same issue with Pathward right now and it's incredibly frustrating! My transcript shows they received my refund on 2/26, but when I called this morning they confirmed they're holding it until exactly 2/28 at 3 AM Eastern. What really gets me is that I specifically chose direct deposit to get my refund faster, but Pathward's policy essentially negates that benefit. The customer service rep explained that while they have the funds, their system is programmed to not release tax refunds until the IRS-specified date regardless of early receipt. I understand it's legal under banking regulations, but it feels like they're prioritizing their own cash flow management over customer convenience. Has anyone had success escalating this through their customer retention department, or is this policy pretty much set in stone? I'm already looking into other banks for next year - this kind of rigid policy doesn't align with how I want to manage my finances.