Tax Savings for Corporate Meetings

We know a number of tips that can save corporations valuable dollars.  Since tax season is upon us, we are going to discuss how meetings at sea may offer tax and cost savings.

First, all tax questions should be posed directly to a tax accountant. With that being said here is some helpful information that we have found. For further reading, IRS Publication 463 provides all necessary information regarding the stipulations and documentation required to make such deductions. The following requirements must be met to deduct up to $2000.

  1. The convention, seminar or meeting is directly related to your trade or business
  2. The cruise ship is a vessel registered to the United States
  3. All of the cruise ship’s ports of call are in the United States or in possession of the United States.

Again, further documentation is required, but the above list contains the most general and necessary guidelines for deduction. Many cruise ships are foreign flagged, but Pride of America by NCL is a US vessel, and there are many river cruises sailed by American Queen Steamboat, American Cruise Lines, and Blount Small Ship Adventures.

Although the stipulations for tax deduction can be limiting, the overall value of holding a meeting at sea can balance the cost of a land based meeting or event. Cruise ships may offer complimentary gratuities, included shore trip excursions, and complimentary use of AV equipment and meeting space. One can also consider adding a land based meeting pre or post cruise to deduct other event, airfare, and hotel expenses.

Next time you are planning a meeting or event, consider a meeting at sea. With a wide range of cruise ships and itineraries available, there is something to fit your needs and we are here to help.


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