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.

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