writing off as business expense

[DaveC426913]

My wife works in primary health care. She works for herself. She occasionally consults with members of her organization(s) and attends conferences all over the country. She also writes articles.

 

If we took a cruise and she attended a conference, or met with a member in a port of call on a cruise, or spent part of the trip writing, could she write off part of the trip?

 

How much/little?

[dforeigner]

Very little if any. Just the cost of the conference but not the cruise itself. Having said that, this is a rather grey area. Why, because the cost of the conference offering the CMEs is usually included in the cost of the cruise. Therefore, one cannot prove how much the conference actually cost.

 

Yes, one can deduct the posted cruise price from the actual price paid, but again, when it comes to an actual receipt...

[gjc1111]

I'm thinking this is a question for a CPA or tax professional . . .

[goneclear]

I have a friend who lives in Canada and does business with all the islands on the Southern Caribbean route. He is a salesman and visits these islands twice a year. He told me he proves it is cheaper to cruise than fly to these islands and then stay at hotels etc. He charges 50% of the cruise to business trip as he takes his wife with him. When in Port he visits his customers. Dont know about the US laws but my friend has been doing this for two years.

[paul929207]

The IRS views a cruise as a vacation that may have some business involved. Only those expenses directly related to business may be deducted. For instance, in a port, if you meet with a client, you could deduct the cost of the taxi between the ship and the meeting and back, but not the cost of the cruise to get to the port.

[DaveC426913]

We're Canadian.

[6rugrats]

My wife works in primary health care. She works for herself. She occasionally consults with members of her organization(s) and attends conferences all over the country. She also writes articles.

 

If we took a cruise and she attended a conference, or met with a member in a port of call on a cruise, or spent part of the trip writing, could she write off part of the trip?

 

How much/little?

 

Why are you asking these question on a message board? Consult a qualified tax preparer or accountant before you get into trouble. These are more complicated questions then you might think. Filing a Schedule C can be tricky and can trigger an audit.

 

That said, I don't see how in the world you could write off part of the trip if she just spent part of it writing. She could write anywhere and would not need to travel to do so.

[DaveC426913]

Why are you asking these question on a message board?

I didn;t know whether I'd get 50 people who do that. It seems apparent that this is not a common practice. OK, that's an answer unto itself.

[GORDONCHICK]

Here in the US, even when you can legally deduct things like a cruise (or part of), it does throw up red flags and increases your chances considerably for an audit. Even if you have a home-based business and deduct part of your mortgage for it, that will do the same thing. I have seen in the past, cruises or trips to exotic locals and they hold CME or CE classes on board or in that local, it's still a red flag area. DH is a CPA and CFO and I work for a health system, keeping track of CE and CME hours and the cost of them.

[happy cruzer]

Ask an expert. However, to let you know whether it is worth your time to pursue. I think a tax expert will tell you that if she is attending class or conference then part of her trip is tax deductible and none of anyone else's is. So if getting to deduct some of her expenses is worth your time, go forward.

 

Good Luck.

[NCTribeFan]

Here in the US, even when you can legally deduct things like a cruise (or part of), it does throw up red flags and increases your chances considerably for an audit. Even if you have a home-based business and deduct part of your mortgage for it, that will do the same thing. I have seen in the past, cruises or trips to exotic locals and they hold CME or CE classes on board or in that local, it's still a red flag area. DH is a CPA and CFO and I work for a health system, keeping track of CE and CME hours and the cost of them.

 

People shouldn't freak out about trying to avoid an audit. You are entitled to legitimate expenses.

 

However, there are guidelines. Plenty of them. For those in the US, all you need to do is go to IRS dot gov and do some reading.

 

There are separate rules for business travel aboard a cruise ship than there are for attending a conference outside the US.

 

http://www.irs.gov/publications/p463/ch01.html#d0e1428

 

And just to be safe...

 

IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication (or in any attachment).

[GORDONCHICK]

People shouldn't freak out about trying to avoid an audit. You are entitled to legitimate expenses.

 

FYI - most people DO fear being audited. We aren't on that list.

[BobBeaSea]

For the OP, wouldn't it be great to be able to write off some or all of a cruise as an expense :). As others have mentioned it is best to consult your accountant, if he/she doesn't have the answer he/she will be able to get the answer. A lot of companies arrange corporate meetings (Sales and other types) on ships and I am sure they can write off at least some of the cost.

Canada also has (I am not current though) some rules about where meetings take place etc., best to check with the pros.