Fair View Inc. owns and operates a golf club, which includes two 18-hole courses, a driving range, a restaurant, and a pro shop. The club’s facilities can be used only by its membership, which includes all the individual shareholders as well as non-shareholders. All the members are charged a greens fee for each round of play plus an additional fee for use of a golf cart. However, the fees for shareholders are 30 percent less than the fees for non-shareholders. Shareholders also enjoy a 30 percent discount on the price of food and drink purchased in the club restaurant and merchandise purchased in the pro shop. Do these discounts have any income tax consequences to Fair View’s shareholders?
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