Dues Deduction

NON-DEDUCTIBILITY PERCENTAGE

For 2012: If the member is a cash basis taxpayer, any business expense paid in 2011 is deducted on their 2011 tax return.  Business expenses are deducted in the year paid for a cash basis taxpayer.  
In the unusual circumstance, if a member is an accrual basis taxpayer, (possibly a C corporation, S corporation, or Partnership) which means they maintain their accounting records on an accrual basis, then they will be able to deduct the expense in the year they receive the benefit.  This means that if they pre pay their membership dues, they will be able to deduct the 2011 dues in 2011 and the 2012 portion of the dues in 2012.

For 2011, 26% of NAR dues ($21 of the $80 NAR dues) is allocated to lobbying and is non-deductible for federal income tax purposes as an ordinary and necessary business expense.

For 2011, 35% of IAR dues and Illinois REALTOR® Advocacy Initiative Assessment ($52 of the combined total of $99 IAR dues and $50 Advocacy Initiative Assessment) is allocated to lobbying and is non-deductible for federal income tax purposes as an ordinary and necessary business expense.

 Per NAR:

Compliance with the Tax Reform Act of 1993 requires that the portion of dues attributable to lobbying and political activities at the State and Federal levels of government be considered nondeductible for income tax purposes.  This nondeductible portion must be disclosed to members on their dues invoice each year.

 “For 2011, with dues at $80 per member, NAR computes 26 percent or $21 to be nondeductible for the member's income tax purposes due to NAR lobbying efforts.   Please note that the entire $35 Public Awareness Campaign special assessment qualifies as fully deductible.”

Statement of Dues for 2010

For 2010, 32% of NAR dues ($26 out of $80) will be allocated to lobbying and is non-deductible for federal income tax purposes as an ordinary and necessary business expense.

For 2010, 35% of IAR dues ($52 of $99 and $50 of Advocacy) and Illinois REALTOR® Advocacy Initiative Assessment will be allocated to lobbying and is non-deductible for federal income tax purposes as an ordinary and necessary business expense.

Compliance with the Tax Reform Act of 1993 requires that the portion of dues attributable to lobbying and political activities at the state and federal levels of government be considered nondeductible for income tax purposes. This nondeductible portion must be disclosed to members on their dues invoice each year.

Statement of Dues for 2009

For 2009, 33% of NAR dues ($26 out of $80) will be allocated to lobbying and is non-deductible for federal income tax purposes as an ordinary and necessary business expense.  This percentage is somewhat higher than in past years due to increased lobbying, advocacy and grassroots efforts across the country as well as new programming approved by the Board of Directors as part of NAR's Second Century Initiatives.  Please note that the entire $35 Public Awareness Campaign special assessment qualifies as fully deductible.

For 2009, 35% of IAR dues ($52 of $99 and $50 of Advocacy) and Illinois REALTOR® Advocacy Initiative Assessment will be allocated to lobbying and is non-deductible for federal income tax purposes as an ordinary and necessary business expense.

North Shore-Barrington Association dues, 0.3% or $.45, is non-deductible of the annual dues of $150.00.  $335.55 of your dues are deductible!

Compliance with the Tax Reform Act of 1993 requires that the portion of dues attributable to lobbying and political activities at the state and federal levels of government be considered nondeductible for income tax purposes. This nondeductible portion must be disclosed to members on their dues invoice each year.

Statement of Dues for 2008

Certain provisions of the new Tax Act regarding lobbying expenses limit the extent to which your National, Illinois and NSBAR dues will be deductible in years 2004 and beyond. Portion of dues allocated to lobbying and is non-deductible for federal tax purposes as an ordinary and necessary expense.

Statement of Dues for 2007 
Certain provisions of the new Tax Act regarding lobbying expenses limit the extent to which your National, Illinois and NSBAR dues will be deductible in years 2004 and beyond. Portion of dues allocated to lobbying and is non-deductible for federal tax purposes as an ordinary and necessary expense.