Larry, one of my suppliers is sponsoring a cruise. During the cruise there will be business meetings for over 7 hours per day. I know that if my wife goes along I cannot deduct her costs because she is not an employee of my business. I also know that if I don't take her I will have severe issues at home. Anyway, is the cruise deductible?
Bill
Bill, you can deduct up to $2,000 per year of your expenses for attending conventions, seminars, or similar meetings held on cruise ships. All ships that sail are considered cruise ships.
You can deduct these expenses only if all of the following requirements are met.
1. The convention, seminar, or meeting is directly related to your trade or business.
2. The cruise ship is a vessel registered in the United States.
3. All of the cruise ship's ports of call are in the United States or in possession of the United States.
4. You attach to your return a written statement signed by you that includes information about:
a. The total days of the trip (not including the days of transportation to and from the cruise ship port),
b. The number of hours each day that you devoted to scheduled business activities, and
c. A program of the scheduled business activities of the meeting.
5. You attach to your return a written statement signed by an officer of the organization or group sponsoring the meeting that includes:
a. A schedule of the business activities of each day of the meeting, and
b. The number of hours you attended the scheduled business activities.
Let me know if you have any other questions. It is a pleasure serving you.
Larry Kopsa CPA
