Renting Out Your Golf Simulator: Fun, Community, and... Tax Benefits
Starting a Neighborhood National club is about so much more than just making money. It’s about creating a fun, community-driven space where people can come together, enjoy the game, practice or play, and have fun alont the way.
If that's for you, then so are we. The cash helps—and you’ll want to know how. Can you make (or save) money by turning your golf simulator into a business?
The short answer is: Yes, and here's how it .
Note: We’re not tax professionals, but these are real numbers based on what we’ve seen from our clubs. Always check with your own tax advisor to make sure this works for your situation.
Everything Becomes a Business Expense
When you rent out your golf simulator as part of a Neighborhood National club, many of your costs become tax-deductible business expenses. Here’s what we’ve learned from our experience with clubs:
- Simulator Setup: Pending your preference, a home setup for NN will run $10K-$20K. For our purposes we'll use $15,000. With the right guidance from a tax professional, this entire cost can often be deducted in the first year.
- Additional Costs: There are other setup costs, like establishing an LLC and securing insurance. These typically add up to around $1,000 in Year 1.
- Ongoing Monthly Costs: Your club will need things like internet and software subscriptions. For most NN clubs, these come to about $1,500 in the first year (around $100/month for internet and $250/year for software).
So, in Year 1, your total costs could be around $17,500—with $15,000 going toward the simulator setup and $2,500 for other essentials (LLC, insurance, internet, software, etc.).
Real Revenue from Renting Your Simulator
Once your club is up and running, you'll start generating revenue. Based on the experience of our clubs, here’s how things can look:
- Revenue from Members: In Year 1, most clubs aim to reach 15–20 members at $65/month. With NN's 20% revenue share, you’ll keep 80% of that.
- For example, let’s say you hit 15 members after 5 months. That gives you about $7,500 in revenue by the end of Year 1.
- After covering your $2,500 in annual costs, you’re left with about $5,000 in net revenue from memberships.
The Tax Benefits: How It Works
The tax benefits are where things get really interesting. Running your simulator as a business means you can deduct expenses from your taxable income.
- Year 1 Loss: With your total Year 1 costs at $17,500 and $5,000 in revenue, you’re looking at a $10,000 loss for the year.
- Tax Savings: If you’re taxed at around 30%, you could save about $3,000 in taxes by deducting that $10,000 loss.
By combining that $3,000 in tax savings with your $5,000 in revenue, you’re looking at an $8,000 net benefit for Year 1—just for renting out your simulator.
Whodda thought your sim could make you smile at tax time?!
The Bottom Line: More Than Just the Money
At the end of the day, starting a Neighborhood National club is about creating a space where people can enjoy the game in a fun, community-driven environment.
Yes, the financial benefits are a nice side perk, but if it's the main thing that you're interested in, NN probably isn't the best fit.
That said, the tax savings and revenue generation are real. By sharing your simulator with a small group of neighbors, you’re not only getting to enjoy the game with others, but you’re also potentially covering your setup costs and even saving money on taxes.
Disclaimer
We’re not tax professionals. The information shared here is based on our real-world experience with Neighborhood National clubs, but you should always consult a certified tax professional to make sure you’re taking full advantage of any available savings.
