Cruising Has Its Limits - For Tax Deductions, That Is

Back in the good old days, (pre-recession, that is), many business people figured they should get all the good things in life from owning a business.  Many owners and board members would plan luxurious vacations and call them "board meetings" and deduct the costs as a business expense.  No more.  In addition to cracking down on entertainment expenses, the IRS also looks unfavorably on conferences, seminars, and board meetings on cruise ships.  You can still take these trips, but there are limits.

Cruise Ship Expense Limit
You can deduct up to $2,000 a year for expenses of meetings, conventions, or trade shows held on cruise ships (the IRS considered any ship to be a cruise ship), but only if all the following conditions are met:

1. The event must be directly related to your trade or business
2. The cruise ship is registered in the U.S. (I found this requirement strange, since most of these cruise ships have non-U.S. registrations)
3. All ports of call are in the U.S. or U.S. possessions

In addition,  you must provide:

1. A written statement detailing the total days of the trip (not including days of transportation to and from the cruise ship port), the number of hours each day devoted to business activities, and the program of scheduled business activities
2. A statement by an officer of the organization or group sponsoring the meeting that includes a schedule of each day's business activities, and the number of hours you attended the scheduled business activities.

Conventions Held Outside the North American Area

You cannot deduct expenses for attending a convention, seminar, or similar meeting held outside the North American area unless:

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