Tax Tip Tuesday: When Can You Deduct a Cruise?

Posted By ,Posted in Small Business Tips.

Tax Tip Tuesday: When Can You Deduct a Cruise?

Sea cruises can be fun. But can they also be tax deductible? Like with many things tax, the answer is “it depends.” Forget about getting a tax deduction for a pure pleasure cruise. You may, however, be able to deduct a cruise, at least part of the cost, if you attend a business convention, seminar or similar meetings directly related 
to your business while on board. Personal investment or financial planning seminars don’t qualify.

But there is a major restriction: In order to deduct a cruise, you must travel on a U.S.-registered ship that stops only in ports in the United States or its possessions, such as Puerto Rico or the U.S. Virgin Islands. If a sponsor promises you’ll be able to deduct a cruise, investigate carefully to make sure it meets these requirements.

If you go on a cruise that is deductible, you must file with your tax return a signed note from the meeting or seminar sponsor listing the business meetings scheduled each day aboard the ship and certifying how many hours you spent in attendance. Make sure to get this statement from the meeting sponsor. Your annual deduction for attending conventions, seminars or similar meetings on ships is limited to $2,000.

Stephen Fishman

Stephen Fishman

Stephen Fishman is a self-employed tax expert and regular contributor to MileIQ. He has dedicated his career as an attorney and author to writing useful, authoritative and recognized guides on taxes and business law for entrepreneurs, independent contractors, freelancers and other self-employed people. He is the author of over 20 books and hundreds of articles, and has been quoted in The New York Times, Wall Street Journal, Chicago Tribune, and many other publications. Visit Fishman Law and Tax Files for more information on his work.
Stephen Fishman

Latest posts by Stephen Fishman (see all)

MileIQ’s blog does not constitute professional tax advice. You should contact your own tax professional to discuss your situation.

x



 
Please enter a valid phone number.
x
Start logging your miles automatically using MileIQ.
Start logging your miles automatically using MileIQ.
<style type="text/css">
#exit-signup {
  z-index: 9999;
}



@media (max-width:796px){
 #exit-signup .quote-text {
    display:none;
}


}

@media (max-width:678px){
#exit-signup ul.mileiq-feats.lower {
display:none;
}
}

#exit-signup .quote-text {
    z-index: 9999999;
    font-size: 18px;
}

#ulp-s3QqZ4gQ5NIl41ua{
 min-height:500px!important;
}

#exit-signup .modal-dialog {
  width: 100%;
  max-width: 900px;
}

#exit-signup ul.mileiq-feats li {
  display: inline-block;
  width: 218px;
  background: url("/images/popups/download-modal/green-check.png") no-repeat;
  padding-left: 28px;
  text-align: left;
  font-size: 14px;
  font-weight: 600;
  color:#808080;
}

#exit-signup .quote-author {
  font-weight: 600;
  color: #fff;
  font-size: 14px;
text-align: right;
}

#exit-signup .quote-text {
  color: #FFF;
  position: absolute;
  bottom: 8px;
  left: -5px;
  padding: 11px;
  text-align: right;
}

#exit-signup ul.mileiq-feats.lower {
  max-width: 300px;
  margin-left: auto;
  margin-right: auto;
  margin-bottom: 30px;
}

#exit-signup ul.mileiq-feats.lower li .inner {
  width: 300px;
}

#exit-signup ul.mileiq-feats.lower li  {
  width: 300px;
}


@media(min-width: 884px){
  
  #exit-signup .quote-text {
    right: 56px;
    bottom: 17px;
  }

#exit-signup .col-md-8 {
padding-right:40px;
}

#exit-signup .col-md-4 {
padding-left:60px!important;
}
}

ul.mileiq-feats {
font-family: 'RealTextOT';
}

@media(min-width: 664px) and (max-width: 991px){
  #exit-signup .quote-text {
    left: 14%!important;
    bottom: 17px;
  }
}

@media(max-width: 663px){
  #exit-signup .quote-text {
    text-align: center;
  }
}

@media(min-width: 992px){
  #exit-signup .col-md-4 {
    background: url("/images/popups/download-modal/or-divider.png") no-repeat;
    background-size: 24px 223px;
    height: 223px;
    padding-left: 45px;
  }


  #exit-signup ul.mileiq-feats.lower{
   display: none; 
  }
}

@media(max-width: 991px){
  #exit-signup .divider-line {
    margin-bottom: 10px!important;
  }
  #exit-signup .modal-body {
    padding: 28px 40px 36px!important;
  }
  #exit-signup ul.mileiq-feats.upper{
   display: none; 
  }
  #exit-signup .col-md-8 {
    display: none;
  }
  #exit-signup .modal-banner {
    padding-left: 20px;
    padding-right: 20px;
    padding-bottom: 19px;
    text-align: center;
  }



  .dl-badges {
    max-width: 180px;
    margin-left: auto;
    margin-right: auto;
   }
   
}

#exit-signup .section-title {
       text-align:center;
   }

ul.mileiq-feats.upper{
max-width: 670px;
margin-left: auto;
margin-right:50px
}

#exit-signup ul.mileiq-feats li .inner{
  width:148px;
}

#exit-signup img.modal-color-bar-top{
  position: absolute;
  width: 100%;
  max-height: 62px;
}

#exit-signup .section-title {
  font-size: 16px;
  font-weight: 600;
  color: #4D4D4D;
  margin-bottom: 15px;
}

#exit-signup #modal-signup-wrap {
  margin-bottom: 36px;
  max-width: 491px;
}

img.mob-banner {
    position: absolute;
    bottom: 0;
    left: 0
}

#exit-signup img.modal-color-bar-bottom{
  position: absolute;
  bottom: 0;
  height: 7px;
  width: 100%;
}

#exit-signup .divider-line {
  height: 1px;
  background: #ddd;
  margin-bottom: 30px;
  margin-top: 19px;
}

#exit-signup .modal-content {
  border-radius: 3px;
  overflow: hidden;
  background-color: rgb(255, 255, 255);
}
#exit-signup .modal-body {    
  padding: 32px 40px 53px;
}
#exit-signup .modal-header {
  padding: 10px;
    border-bottom: none;
}
#exit-signup h2 {
  font-family: "RealTextOT-Bold";
  font-size: 41px;
  margin-bottom: 25px;
  color: #333;
  margin-left: auto;
  margin-right: auto;
  line-height: 1.017;
text-align: center;
}

@media(max-width: 768px){
  #exit-signup h2 {
    font-size: 32px!important;
  }

#exit-signup .section-title{
display:none;
}
}

#exit-signup .badges .left-button{
  float:left;
  width: 48%;
}

#exit-signup .badges .right-button{
  float:right;
  width: 48%;
}

#exit-signup .badges{
  max-width: 320px;
  margin-left: auto;
  margin-right: auto;
  margin-bottom: 15px;
}

#exit-signup .modal-white-x{
  position: absolute;
  right: 20px;
  top: 20px;
}

#exit-signup button.close{
  position: absolute;
  right: 17px;
  top: 14px;
  opacity: 1;
  z-index: 100;
}

#exit-signup button.close:focus{
  outline:none;
}
</style>

<div id="exit-signup">
<div class="modal-body text-center">
            <h2>Try MileIQ for Free.</h2>
            <ul class="mileiq-feats upper">
              <li><div class="inner">Your data is never sold or shared</div></li>
              <li><div class="inner">All versions of our apps are ad-free</div></li>
              <li><div class="inner">Your drive history is secure & available</div></li>
            </ul>
            <div class="divider-line"></div>
            <div class="col-md-8">
              <div class="section-title">
                Get started by creating an account
              </div>
              <div id="modal-signup-wrap-exit">
                <iframe src="https://dashboard.mileiq.com/signup?v=iframe-2&media_source=blog&campaign=https://www.mileiq.com/blog/blog&campaign_detail=blog_exit_popup" style="border: none;height: 181px;width:100%;"></iframe>
              </div>
            </div>
            <div class="col-md-4">
              <div class="section-title">
                Download the app
              </div>
              <div class="dl-badges">
              <!-- Badges -->
                <ul class="badge-list">
                  <li style="margin-bottom: 10px;">
                    <a href="http://app.appsflyer.com/id578830929?pid=website&c=header_modal" target="_blank">
                      <img src="/images/popups/download-modal/ios-badge.png">
                    </a>
                  </li>
                  <li>
                    <a href="http://app.appsflyer.com/com.mobiledatalabs.mileiq?pid=website&c=header_modal" target="_blank">
                      <img src="/images/popups/download-modal/android-badge.png">
                    </a>
                  </li>
                </ul>
                <div style="clear:both"></div>
              </div>
            </div>
          </div>
          <ul class="mileiq-feats lower">
            <li><div class="inner">Your data is never sold or shared</div></li>
            <li><div class="inner">All versions of our apps are ad-free</div></li>
            <li><div class="inner">Your drive history is secure & available</div></li>
          </ul>
          <div class="modal-banner">
            
            <div class="quote-text">
              “When I show MileIQ to my accounting clients, they sign up immediately. Fact.”
              <div class="quote-author">
                -Jody Jordan, CPA & MileIQ user
              </div>
            </div>
            
          </div>
         </div>
          <img src="/images/popups/download-modal/lower-banner.png" class="mob-banner">
</div>