Ref: IRS Publication 463
It’s “cruise season.” A good time to reflect on the IRS rules for deducting attendance at training / seminar on a cruise ship. If the primary reason for the cruise is the seminar/training, the a deduction is allowed up to $2,000 per year for the attendee (not their family/companion) only IF all of the following are true and well documented:
- The convention, seminar or meeting is directly related to your trade or business.
- The ship is registered in the United States
- All of the cruise ship’s ports of call are in the United States or a possession of the United States
- You attach to the return a signed /written statement with detail including a log of the number of hours each day attending the meetings and a program of the business activities.
- You attach to your return a signed written statement signed by an officer of the organization sponsoring the conference that includes the daily schedules and the number of hours you actually attended (from their attendance rolls).
This is a VERY DIFFICULT deduction to qualify for and one which will receive scrutiny or the taxing authorities.
