Washington Country Club Granted Tax Break for Initiation Fees (2)

The Royal Oaks Country Club may deduct initiation fees from its taxable income, entitling it to a refund of nearly $48,000, a Washington appeals court ruled.

The Washington Court of Appeals, Division II, on Tuesday reversed a trial court ruling that only a portion of the one-time initiation fees paid to the nonprofit club in addition to monthly dues was deductible. The fees range from $200 to $10,000, depending on membership level.

The court rejected the Department of Revenue’s argument that any amount over $200 is attributable to increased access to services and facilities, and isn’t a ...