With the new tax bill in effect, Wisconsin Dental Association member dentists might wonder about the deductibility of WDA dues as it relates to the new tax bill. The itemized deduction for professional membership dues was eliminated, but the business deduction for dues remained in place. Dues to a professional organization are still deductible as a business expense, with the exception of the portion of dues attributable to lobbying activities. The lobbying percentage is included on your dues statement each year to calculate this amount.
3204.4 The dues disallowance provisions generally do not apply to professional organizations (such as bar and medical associations) or civic or public organizations (such as Kiwanis, Lions, Rotary, Civitan and similar organizations) as long as their principal purpose is not entertainment. Certain organizations similar to professional organizations are also generally excepted from dues disallowance. Specific examples include business leagues, trade associations, chambers of commerce, boards of trade and real estate boards [Reg. 1.274-2(a)(2)(iii)]. Accordingly, dues paid to such organizations are deductible.
