Cruise Planner and Travel Agent - Cruise Expense Deductions

[ADelgado1334]

As a Cruise Planner and Travel Agent dealing exclusively in cruises and cruise events, am I able to deduct 100% of my cruise expense when supported by receipts and well documented regarding my business activities while on the cruise ship?

[MaryK4]

Yes, you can deduct any ordinary and necessary expenses.  You can deduct 100% if it was all business, and the IRS allows you to reduce your deduction if there are parts that can be personal (though not required, it is not all or nothing.) 

[ADelgado1334]

Thank you for the reply.  Do you think it would be most appropriate to record the expense on Schedule C on the line for Travel Expense or more appropriately on the line for Other and note it related to Selling and Travel Destination Research or similar to clarify the business purpose.

[KrisD15 · Accepted solution]

I would use Travel Expense as the category. "Other" is a catch-all which the IRS "Frowns Upon" .

Either place is fine, but whichever you choose, try to use the same category year after year. The IRS does like consistency. 

[ADelgado1334]

I truly appreciate your reply.  Do you think reporting it on Travel would trigger the 2k limitation on cruises (intended more for seminars, conventions and similar)?  Since I am planning and hosting group cruise events and selling cruises on the cruise ship, I want to be sure the business purpose is clear.  Future cruise bookings (and travel agent commission income) results from the business activities conducted on the cruise.

[BillM223 · Accepted solution]

"Do you think reporting it on Travel would trigger the 2k limitation on cruises (intended more for seminars, conventions and similar)?"

No, this does not apply to you. This applies to people who are attending conventions, seminars, or similar meetings on a ship. You are conducting business on the ship. See Conventions under Pub 463.