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