Sunday, October 11, 2009

Can you receive a tax credit for a cruise?

If so, how much can you receive? Can you provide any links, or information?

Can you receive a tax credit for a cruise?
No. Not a tax credit. But you might be able to get a tax deductiion if you can show that the primary reason of the cruise is for education reasons or a business write off.
Reply:Tax DEDUCTION as a business expense, not credit, maybe, and likely not for the full amount. The rules are strict for cruise travel deduction as a business expense. As a W-2 employee, if at all, you would be stuck with an unreimbursed EE expense, subject to the 2% AGI floor, not likely gonig to be worth anything.





See www.irs.gov/pub/irs-pdf/p463.pdf - page 8 "Luxury water travel" and the rest of the IRS publication on travel.
Reply:Yes you can but you better have some darn good documentation. You should check out the IRS web site and look at business trips and expenses. However, going on a cruise looks more like pleasure than business. I think you will have a very difficult time proving it.
Reply:is this cruise work related?





**You should get some sort of credit then.


Here is something I found, I think it applies to Michigan, but maybe it can help you further:


http://www.jstor.org/pss/1286445


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