Hi everyone,

[ CAUTION - I'm not an accountant or lawyer, let alone a tax lawyer, and
I don't even play one on TV... ]

The way I read the IRS pages referred to below and the Revenue rulings
they mention (you can get the texts at www.taxlinks.com), under the 1970
ruling (Rev. rule 70-32)

"A flying club providing economical flying facilities
for its members but having no organized social and
recreation program does not qualify for exemption under
section 501(c)(7) of the Code."

In a later 1974 ruling (Rev. rule 74-30) a flying club whose charter
expressly included opportunities for members to get together to fly,
wash, and maintain the plane WAS ruled to qualify:

"In order for a club to meet the requirements for exemption
under section 501(c)(7) of the Code, there must be an established
membership of individuals, personal contacts, and fellowship.
Furthermore, a commingling of members must play a material part
in the activities of the organization. See Rev. Rul. 58-589,
1958-2 C.B. 266, and Rev. Rul. 69-635, 1969-2 C.B. 126."

So besides everything else your flying club has to be a SOCIAL club to
qualify for the "social and recreational club" exemption under 501(c)(7).

Hope that helps,
-Patrick.

In article ,
"Gerry Caron" wrote:

Yes you can qualify. The club I belong to is a non-profit corp. chartered
under sec 501 (c) (7), social clubs.

Here's the link to the IRS: http://www.irs.gov/irm/part7/ch10s10.html

The key is an organization of members with a common social purpose (to fly).
As long as all your income is from members (dues and rentals) and is used
for the benefit of all the members (keeping the planes flying), you've met
the requirements. The most likely disqualifier would be to allow rentals to
non-members, thus generating non-member income.

Talk to a lawyer to set it up. It's not a complicated process.

Gerry


"CHRISTOPHER SPIERINGS" wrote in message
news:gmeOd.22822$uc.12371@trnddc09...
Denny,

I've found that having some prior knowledge often helps to keep the
attorney focused. I'm hopeful that others have explored this and can lend
advice. We certainly aren't set up as a non profit nor do I think we would
necessarily qualify.

Chris

"Denny" wrote in message
oups.com...
Depends on how the club is registered with the state and the feds as a
legal entity (or not registered)... You need the advice of an attorney
in your state, not a beating from usenet (though you will likely get
one anyway

Denny