If you travel by ship and food, beverage and entertainment are included in the cabin price, you do not have to break out the cost of those items.

BENEFITS of BUSINESS TRAVEL BY LUXURY SHIP
  • Travel by ship is tax deductible to a qualified taxpayer to the extent permitted by law.
  • Food, beverages and entertainment, when included in cabin price, are fully deductible.
  • You may deduct the cabin expense that would be charged to a single occupant.
  • Many ships charge the same for one or two persons in a cabin.
  • If an employer reimburses an employee for ship travel expenses properly, the reimbursement is not taxable income to the employee.
  • You are not required to work while in transit; this applies to travel by ship.
  • There is no limit on the amount of days you may travel by ship.
  • You may travel by ship to attend business anywhere in the world. Seminars and other meetings may be limited to North America.
TAX PACKET 2007 2007 Tax Packet
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What is Business Travel by Luxury Ship?

Business travel by luxury ship is simply travelling for business by luxury water transportation. A business traveler may choose to travel by ship even when there are opportunities to travel by air or car; travel at less cost; and take less time to reach the business event, which could be a private meeting, a group function, an exhibition or a seminar. Plus, when you travel by luxury ship, you can stay in touch with your office 24/7.

What is luxury water transportation?

According the Internal Revenue Service (IRS), luxury water transportation consists of any ship or vessel that carries passengers. Whether you enjoy the traditional ocean liners, or the modern use of ships or yachts, they are considered luxury water transportation. Imagine experiencing a ship's amenities such as food, entertainment and accommodations while travelling for business. Can you envision any finer way to travel?

There are limitations to consider. For example, the daily amount that you may deduct is twice the highest federal per diem rate. This limit does experience fluctuations as months go by. We encourage you to read more about our daily deduction limits for more information.

Exclusive Business Class Cabin™

The Business Class Cabin is a special cabin fare, exclusive to Business Travel Only. The fare recognizes the special requirements of the business traveler and includes access to many of the office facilities and equipment required by the business traveler. The fare is the same for single or double occupancy, much like a hotel that caters to business travelers and allows you benefit from the best tax advantages.