
We can support private clubs with audited financial statements, income tax preparation, sales and use taxes, protection of tax-exempt status, internal control enhancement, plus much more. Clubs operate in an unique business environment and need specific guidance with changing rules and regulations, tax laws, and membership needs. Stroemer & Company understands these challenges and provides tailored services focused on your individual club.
While we concentrate on the accounting, management can focus on their members, customers, employees, and running a successful club. Stroemer & Company is dedicated to providing clients with the vision and financial strength necessary for continued growth in trying economic conditions.
Professional Services Provided:
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Ensure compliance with ever-changing governmental tax and non-taxable requirements and issues
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Provide well-planned, timely audit or review
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Classify and separate member vs. non-member income
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Advise on new 1099-B filing requirements
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Clarify privacy issues
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Comply with sales and use tax regulations
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Enhance internal controls
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Provide turnover audits
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Define Rev. Proc. 71-17 record-keeping requirements for taxable and non-taxable clubs
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Prevent IRS "red flags"
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Improve strategies to bring in new members and revenue streams
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Keep you up-to-date on current regulations and new requirements
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Determine compensation packages for management
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Identify industry trends
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Assist with club management succession and transitioning
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Provide training in many financial areas unique to golf clubs
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Analyze public-to-private and private-to-public conversions
The basic day to day operations and issues running a master association/bundled community versus a private club are essentially similar except for the following significant issues:
Master Associations/Bundled Communities
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Bundled community - No sales tax of membership
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Revenue subsidized by public (golf, proshop, restaurant, etc.)
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Real Estate Taxes – Inconsistent treatment (need to discuss), need to contest valuation issues
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Collect Sales Tax: non-resident assessments/dues, golf cart, trail, and green fees, golf membership dues (if not bundled), golf pro shop sales
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File under section 277 of IRC: Member vs. Non-member, and use revenue ruling 70-604
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File 1120 – regular corporation
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No restrictions
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Not private (deal with the public) – non-resident equity memberships
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More crowding (busier restaurants and golf course)
Private Club
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Pay sales tax on dues (6%), if equity membership or various classes of membership
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Revenue is not subsidized by public- will have to increase assessments
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Real Estate Taxes - Inconsistent treatment (need to discuss), need to contest valuation issues
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Usually file 990, also may file a 990T
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Restrictions of revenue sources
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Private (control environment/quality of members)
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Less crowding
If you need assistance, please contact us at 1-855-STROEMER or JamieR@StroemerCPA.com, se habla espanol.