Article Date:
July 2019


Word Count:
1096

 

 

How to Deduct Cruise Ship Conventions, Seminars, and Meetings


The IRS considers all ships that sail cruise ships.1

 

In 1982, your lawmakers were attempting to give the U.S. cruise ship industry a leg up by outlawing all cruise ship conventions, seminars, and similar meetings other than those2

 

·

that take place on a vessel registered in the United States,3 and

·

where all ports of call of such vessel are located in the United States or in possessions of the United States.4

 

The 1982 law remains on the books. Lawmakers have not updated the limits for inflation. Here’s the cruise ship convention tax code rule as it existed in 1982 and as it exists today:5

 

With respect to cruises beginning in any calendar year, not more than $2,000 of the expenses attributable to an individual attending one or more meetings may be taken into account under Section 162 . . .

 

Had the $2,000 been indexed for inflation, the 2019 amount would be a reasonable $5,431, and that would likely encourage more 2019 U.S. cruise ship convention-type travel.

 

But that $2,000 is pretty skimpy (perhaps ridiculous) when you consider that the expenses include

 

·

the cost of air or other travel to get to and from the cruise ship port;

·

the cost of the cruise; and

·

the cost of the convention, seminar, or similar meeting.

 

Hang Around, Because . . .

 

The $2,000 ceiling may feel draconian, but hang in there with us, because later in this strategy article, we will show you how to

 

·

avoid almost all dollar limits;

·

suffer very few tax rules; and

·

deduct all the costs you incur. ... Log in to view full article.

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