J.K. Lasser's Small Business Taxes 2013: Your Complete Guide to a Better Bottom Line

Conventions

Travel expenses to conventions held within the United States are deductible if you can show that your attendance benefits your business. The fact that you are appointed or elected to be a delegate to the convention does not, by itself, mean you can deduct expenses; you must show that attendance is connected to your business. You can do this by showing that the convention agenda is related to the active conduct of your business. The same rule applies to both employees and self-employed persons.

Foreign Conventions

The expenses of attending a convention outside the North American area (see Table 8.1) are not deductible unless the meeting is directly related to your business and it is reasonable to hold it outside the North American area.

A number of facts and circumstances are taken into account in showing that it is reasonable to hold the convention outside the North American area. They are:

• The purpose of the meeting and the activities taking place at the meeting
• The purposes and activities of the sponsoring organizations or groups
• The residences of the active members of the sponsoring organization and the places at which the meetings of the sponsoring organizations or groups have been held or will be held
• Other relevant factors

Cruise Ships

The cost of business conventions or meetings held on a cruise ship is limited. The maximum deduction per year is $2,000. In order to get this deduction, a number of requirements must be met:

1. The meeting must be directly related ...