Vendor category
What tax category is a Planet Fitness charge?
A Planet Fitness charge normally falls under Owner's draw because a business typically uses the gym for employee wellness or as a benefit, which is considered a personal expense for the owner. This changes if the gym is used for employee wellness programs or as a benefit for employees, in which case it would be a business expense. If the owner uses the gym for personal reasons, the charge would be a personal expense.
PLANET FITNESS CLUBCategory
3100Owner's draw
Confidence
95%
- Decided by
- a vendor rule
- Deductible
- No — personal spend is a draw, not an expense
- Why
- matched seed rule 'planet fitness'
When a business owner uses a gym like Planet Fitness, it's often for employee wellness or as a benefit, which is considered a personal expense for the owner. This is because the owner is using the gym for their own benefit, rather than for a business purpose.
If the gym is used for employee wellness programs or as a benefit for employees, the charge would be a business expense. This is because the business is providing a benefit to its employees, which is a legitimate business expense.
Personal use
Check if the owner used the gym for personal reasons.
Employee benefits
Determine if the gym is used for employee wellness programs or as a benefit for employees.
Business purpose
Verify if the gym is used for a legitimate business purpose.
Categorize your own transactions
This page asked the same engine your books would. Run it over a whole year of statements and receipts and get the categories, the reconciliation and the fix list.
Questions people ask
- What is Owner's draw?
- Owner's draw is a category for personal expenses made by a business owner, which are not deductible as business expenses.
- Why is a Planet Fitness charge a personal expense?
- A Planet Fitness charge is a personal expense because a business typically uses the gym for employee wellness or as a benefit, which is considered a personal expense for the owner.
- When is a Planet Fitness charge a business expense?
- A Planet Fitness charge is a business expense if the gym is used for employee wellness programs or as a benefit for employees.
Related expense categories
More in vendor categories
General information about how bookkeeping and Schedule C categorization work — not tax advice. BookkeeperLens is a demo running on synthetic data.