{"id":8623,"date":"2022-05-10T15:20:26","date_gmt":"2022-05-10T20:20:26","guid":{"rendered":"https:\/\/www.cainwatters.com\/digitalblogs\/?p=8623"},"modified":"2022-07-06T10:53:06","modified_gmt":"2022-07-06T15:53:06","slug":"cruise-ship-deduction","status":"publish","type":"post","link":"https:\/\/www.cainwatters.com\/digitalblogs\/cruise-ship-deduction\/","title":{"rendered":"Ask a CPA: Can I deduct my continuing education cruise ship trip?"},"content":{"rendered":"\t\t
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Although we are always looking to make continuing education fun (check out the CWA 31st Annual Meeting<\/span><\/a>), when it comes to the tax deductibility of CE\u2014when does the IRS think you\u2019ve crossed the line?<\/p>

CWA Tax Director and CPA Kristina Yarbrough<\/span><\/a> says she gets asked several times a year regarding the deductibility of cruise ship expenses when associated with a convention, seminar or other meeting that contains business related continuing education.<\/p>

In fact, there are several cruise agencies out there that sell cruise packages that offer specific trade or business conventions while cruising.\u00a0 \u201cWhat these companies don\u2019t tell you is that it is not always a deductible business expense,\u201d says Kristina. \u201cBecause of extensive abuse involving tax dedications on these types of expenses, the IRS has passed strict rules on their deductibility.\u201d<\/p>

Although more difficult now, the IRS has outlined specific guidelines that a taxpayer must follow in order to get a deduction for a cruise associated with a convention, seminar or meeting that is specific to their trade or business.<\/p>

Per the IRS code section 274(h) you can deduct up to $2,000 per year of your expenses for attending conventions, seminars, or similar meetings held on cruise ships.\u00a0 Any water vessels that sail are considered \u201ccruise ships\u201d regardless of ship size.<\/p>

You can deduct these expenses only if all<\/strong> of the following requirements are met:<\/p>

The convention, seminar or meeting is directly related to your trade or business.<\/p>

The cruise ship is a vessel registered in the United States.<\/p>

All<\/strong> the cruise ship\u2019s ports of call are in the United States or in possessions of the U.S.\u00a0 Important Note: If you are on a cruise ship, and all but one or two of the ports of call are in the U.S. or it\u2019s possessions, you do not get to aggregate the cost.\u00a0 This is an all or nothing clause.<\/p>

Attach to your return a written statement signed by the taxpayer that includes the following information:<\/p>