That is very helpful information. If you are reducing or eliminating their fees for the next tournament, the benefit that they receive is still taxable.
You are correct about Hobby Expenses going away in 2018. Your golfers may still be able to treat the activity as a for-profit business and rightfully deduct the losses. Basically, they must demonstrate an honest intent to make a profit. Factors that can prove (or disprove) such intent include:
- Conducting the activity in a business like manner by keeping good records and searching for profit making strategies.
- Having expertise in the activity or hiring advisers who do,
- Spending enough time to justify the notion that the activity is a business and not a hobby,
- Success in other ventures, which indicate business acumen,
- With elements of personal pleasure though, the IRS is far likely to claim that it is a hobby if losses start showing up on the tax returns.
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