Tax Deductions?

[LewiLewi]

Is any part of the cruise fare tax deductible? Can any part be deducted from annual taxes?

[cruiserfromohio]

No.  What would make you think that?

[LewiLewi]

You are able to deduct taxes on products that you buy, i.e. Furniture, restaurant meals, shopping, etc.

[verizon]

4 minutes ago, LewiLewi said:

You are able to deduct taxes on products that you buy, i.e. Furniture, restaurant meals, shopping, etc.

Hmmm.Interesting.

[Phxazzcruisers]

are you in the US?  If so, no part of the cruise fare is tax deductible.

[Hlitner]

Not sure we are all on the save wavelength about what you refer to as "tax deductions."  If you are from the USA or Canada you will not be able to deduct anything off your Federal Income tax because you cruise.  But there are many countries around the world that impose VAT (Value Added Tax) on just about everything.   An oversimplified way of thinking about VAT taxes is that its simply a Sales Tax that is added to the cost of many consumer goods.  But unlike here in the USA, a VAT tax is somewhat hidden in that it is actually included in the price you pay for the item.  In some European countries the stores will now show the VAT tax amount as a separate line item on the bottom of a cash register receipt but that is the exception rather then the rule.

 

In some cases (and it varies by country) some of those VAT taxes can be reimbursed to tourists.  As a general rule this only makes sense for larger purchases (there are some exceptions) and there are various "schemes" used by each country that allow you to recover some of those taxes.  The reality is that unless you are shopping for very expensive items the recovery methods are often not worth the trouble.  If you want to know more about the subject you can just Google the name of any country and "VAT Tax recovery."  You can find all kinds of info about VAT taxes on the internet.  But keep in mind that each country has their own rules.  In more then forty years of International travel (and our share of shopping) we have only recovered some VAT taxes two times and that was for some expensive items purchased in France.

 

There has been a recent discussion elsewhere on Cruise Critic about the VAT tax in Mexico.  In that country certain stores participate in the "scheme" that allows shoppers to apply for a partial refund on certain items.  While many have probably filed the paperwork to recover the tax, there has yet to be a single CC poster that claims to ever having received any money :).

Hank

[rwb]

If you live in the US and you itemize deductions, you can either deduct state income taxes or  state and local sales and use taxes and some foreign taxes.  You can’t deduct both, it is one or the other.  Cruise taxes are quite minor compared to non deductible fees and port charges, which are not taxes.

[LewiLewi]

Thank you for all of your input. 

[bigbeergut]

3 hours ago, LewiLewi said:

Is any part of the cruise fare tax deductible? Can any part be deducted from annual taxes?

 Perhaps you can have your doctor write a prescription for a cruise to reduce your anxiety.  

[Husky61]

Don't you think you should be talking to a tax specialist rather than fellow cruisers?🙂

[verizon]

5 minutes ago, Husky61 said:

Don't you think you should be talking to a tax specialist rather than fellow cruisers?🙂

Trust me there are a lot of certified CPA here.

[Hlitner]

Speaking of US Tax deductions, once upon a time there were many who would deduct the entire cost of a cruise as a business travel deduction.  Quite a few professional groups such as physicians and lawyers would do large group bookings where they would have various continuing ed or other professional seminars on the ship.  The participants could then deduct the cost of the cruise as a business tax deduction.  But a few years ago IRS "wised up" and really tightened the restrictions to a point where a business deduction is now very difficult if not impossible.  For example, they require that all the posts be in the United States or its possessions and the ship must be registered in the USA.  That effectively rules out any Caribbean cruise.   I am posting a link to a fascinating article written by a CPA Tax Expert on the subject:

http://www.cpa-connecticut.com/cruise-tax-deduction.html

 

Hank

 

[bigbeergut]

16 minutes ago, Husky61 said:

Don't you think you should be talking to a tax specialist rather than fellow cruisers?🙂

No one knows more than the people on CC

[bigbeergut]

Just now, Hlitner said:

Speaking of US Tax deductions, once upon a time there were many who would deduct the entire cost of a cruise as a business travel deduction.  Quite a few professional groups such as physicians and lawyers would do large group bookings where they would have various continuing ed or other professional seminars on the ship.  The participants could then deduct the cost of the cruise as a business tax deduction.  But a few years ago IRS "wised up" and really tightened the restrictions to a point where a business deduction is now very difficult if not impossible.  For example, they require that all the posts be in the United States or its possessions and the ship must be registered in the USA.  That effectively rules out any Caribbean cruise.   I am posting a link to a fascinating article written by a CPA Tax Expert on the subject:

http://www.cpa-connecticut.com/cruise-tax-deduction.html

 

Hank

Sounds like that's a requirement designed for the "Pride of America" in Hawaii.

[NantahalaCruiser]

7 hours ago, bigbeergut said:

Sounds like that's a requirement designed for the "Pride of America" in Hawaii.

Or US river and/or great lakes cruises.

[bigbeergut]

33 minutes ago, NantahalaCruiser said:

Or US river and/or great lakes cruises.

Not the Great Lake Cruises, they stop in Canada 

[Husky61]

21 hours ago, verizon said:

Trust me there are a lot of certified CPA here.

 

The I guess this is the placeto get medical and legal advice as well.  Far better than seeing a professional.🙄

[Luvcrusn]

I'd suggest you ask your accountant. If you do the wrong thing based on advice you've gotten here, telling the IRS that Cruise Critic posters said you could isn't really going to be very helpful.