Travel By Cruise Ship

Travel by cruise ship on a business trip is deductible.

The cost is limited to:

  • Double the highest federal per diem rate for travel inside the Continental United States (CONUS) X the number of days in transit.

Example:

  • You go to Europe
  • The highest per diem rate is $366
  • It is a 7-day trip

Result:

  • Your maximum deduction is $5,124 (2 x $366 x 7).

If meals are included in your bill but not listed as a separate item, then you may apply the double per diem rate to the total amount of the bill. On the other hand, if meals are listed as a separate item, you must reduce the costs for meals by 50%.

The double per diem rule does not apply to cruise ship convention costs that are deductible up to $2,000 a year if...

  • all ports of call are in the United States, or
  • U.S. Possessions, and
  • if the ship is registered in the United States.

Reminder

  • Generally, for one-day business trips within the general area of your business (or employment) you can only deduct transportation costs, not the costs of meals.

File your personal and small business taxes (Schedule C)