Non-Deductible Portion of AAR 2012 Dues
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 non-deductible for income tax purposes. This nondeductible portion must be disclosed to members on their dues invoice each year.
AAR: The 2013 AAR budget has been approved by the AAR Board of Directors, and the non-deductible portion of the $155.00 dues is eight percent or $13.00 (rounded up) based on the IRS’s lobby expense formula. $142.00 will be deductible by the membership on their income taxes.
NAR: For NAR 2013 dues of $120 per member, NAR computes 36 percent, or $44.00, to be non-deductible for the member’s income tax due to NAR lobbying efforts. Note per NAR website: the entire $35.00 special assessment portion of dues related to public awareness qualifies as deductible dues.