Golf Comment

As I understand it, using the Manchester example as a model, the following would occur regarding the Eastman Golf Club:

Since the Club purveys to renters and other non-Eastman members, it should cover all its expenses by use of USER fees, and these should not be assessed against those who chose not to use the golf facility..

Also, the following would apply relative to any tax implications:

1. Generally accepted accounting principles (GAAP) would require all employee expenses, including wages, salaries and benefits must be included in the Gold Club expenses rather than putting the latter in the general and administrative expenses of the community as a whole.

2. I suspect that following GAAP would reduce the 'profit' of the club to such a degree that any tax implications would be de minimus..

Herb