Every business is subject to taxes. As a business owner, whether small or established, you should be ready and willing to comply as far as paying taxes is concerned. Fitness centers and gyms are not exempted from taxes. Fortunately, there are several tax deductions fitness centers can take advantage of. As much as the tax deductions might vary with the gym and the services provided, having the general knowledge of the deductions available to you is vital for your business.
Tax Deductions for Gyms
It is essential to understand that services rendered by lawyers, accountants, and other professionals within your premise are considered deductible expenses. As a gym instructor, you can deduct the cost of such services when filing your returns, as they directly influence the direction your business takes.
Every fitness center should have a membership subscription fee. This is necessary as deductible expenses run through subscriptions for professional journals or magazines and professional organizations. The subscription fees paid by the members in your gym becomes deductible as they help you maintain your status as a personal trainer with the supervising authority.
Gym Equipment and Gear
It is a fact that any equipment or gear used in your gym by your clients is considered a deductible expense. As the fitness instructor, it will serve your best interest when you have an inventory of the equipment within your premises, including weights, mats, and machines. Note that as long as your clients use the tools and equipment in your gym, they can be deducted from your tax return.
Music and Exercise Videos
Do you play music or videos while working with clients in your fitness center? Do you include exercise videos during the gym sessions? If yes, you should include the cost of paid downloads, the CDs, and the streaming services that your clients enjoy in your deductions. Tax deductibles include the cost of the exercise videos you buy, play, and share with your clients. It is crucial to have the receipts ready for presentation when needed by the tax authority.
If your business can’t operate without using a computer or internet-connected phone, make sure to include the internet fees in your deductible expenses.
The fitness industry in the U.S. is gaining momentum as days go by. The U.S. Bureau of Labor Statistics suggests that the number of jobs in the fitness industry is expected to increase by more than 23% over the next 10 years. In such a case, the revenue generated from the fitness center is expected to be higher. As a gym instructor, taking advantage of tax deductions becomes paramount.