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Is the cost of the seminar tax deductible? It depends....
If
you can show that your attendance (at our seminar) benefits your trade or
business. The agenda does not have to deal specifically with your official
duties or responsibilities: it will be enough if the agenda is so related to
your position that it shows your attendance was for business purposes.
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Are travel expenses deductible? Yes!
You can deduct your travel expenses when you attend a convention (or seminar) if
you can show that your attendance benefits your trade or business. (See above)
If the convention is for investment, political, social, or other purposes
unrelated to your trade or business, you cannot deduct the expenses.
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Are there special rules for travel outside the
United States?
Yes.
Your trip (Travel Expense) is considered entirely for business if you were
outside the United States for a week or less, combining business and
non-business activities. one week means seven consecutive days. In counting the
days do not count the day you leave the United States, but do count the day you
return to the United States.
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Are there special rules if I decided to travel
by cruise ship? Yes.
If you travel by ocean liner, cruise ship, or other form of luxury
water transportation for business purposes, there is a daily limit on the amount
you can deduct. The limit is twice the highest federal per diem rate allowable
at the time of your travel. (In 2004 the highest federal per diem was $259.00
which makes the daily
limit on luxury water travel $518.00.)
If your meal or entertainment charges are not separately stated or are not
clearly identifiable, you do not have to allocate any portion of the total
charge to meals or entertainment. (Usually the case on cruise ships.)
If your expenses for luxury water travel include separately stated amounts for
meals and entertainment, (Drinks, specialty restaurants, exceptions etc.) those
amounts are subject to the 50% limit on meals and entertainment before you apply
the daily limit.
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Are the tax advantages the same if the convention or
seminar is held on the ship? NO!!!! (Because none of our seminars or
conventions are held on the cruise ship the following does not apply.)
You can (only) deduct up to $2,000.00 per year of your expenses of attending
conventions, seminars, or similar meetings
held on cruise ships. You can deduct these expenses
only if all five of the following requirements are met.
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The convention, seminar, or meeting is
directly related to your trade or business.
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The cruise ship is registered in the
U.S. (Most are
not.)
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All of the cruise ships ports of call are in
the
U.S. or in possessions of the U.S.
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You attach to your return a written statement
signed by you that includes information about:
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The total days of the trip (cruise), and
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The number of hours each day that you devoted to business
activities, and
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A program of the scheduled business activities of the meeting.
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You attach to your return a written
statement signed by an officer of the organization or group sponsoring the
meeting that includes:
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A schedule of the business activities of each day of the meeting,
and
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The number of hours you attended the business activities.
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Reference: US
IRS Publication 463
