Dues Deduction
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.
| |
Estimated Lobbying Expense Percentage |
Non-Deductible Portion |
| National Association of REALTORS |
22% |
= $18.00 |
| Illinois Association of REALTORS |
35% (Annual Dues $99.00) |
= $52.00 |
| North Shore-Barrington Assoc., |
0.3% (Annual Dues $150.00) |
= $ .50 |
| |
Total Estimated Non-Deductible Portion |
= $70.50 |
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 2005 and beyond. The portion of dues allocated to lobbying and is non-deductible for federal tax purposes as an ordinary and necessary expense.
| |
Estimated Lobbying Expense Percentage |
Non-Deductible Portion |
| National Association of REALTORS |
23% |
= $15.00 |
| Illinois Association of REALTORS |
30% |
= $52.00 |
| North Shore-Barrington Assoc., |
0.3% |
= $ .50 |
| |
Total Estimated Non-Deductible Portion |
= $67.50 |
For 2006, 20% of NAR dues or $13.00 of the $64.00 NAR dues is allocated lobbying and is non-deductible for federal income tax purposes as an ordinary and necessary business expense.
For 2006, 30% of IAR dues or $30.00 of the $99.00 IAR dues is allocated to lobbying and is non-deductible for federal income tax purposes as an ordinary and necessary business expense.
|
Estimated Lobbying Expense Percentage |
Non-Deductible Portion |
| National Association of REALTORS |
20% (Annual Dues $64.00 less $20 for ads) |
= $13.00 |
| Illinois Association of REALTORS |
30% (Annual Dues $99.00 and the $10 legal fund is deductible) |
= $30.00 |
| North Shore-Barrington Assoc., |
0.3% (Annual Dues $150.00) |
= $ 3.00 |
| |
Total Estimated Non-Deductible Portion |
= $46.00 |
| |
Total Deductible is portion |
= $297.00 |