 |
List of US Registered Ships
We offer here a list of all ships currently registered in the US and sailing in the “North American area” as defined by IRS code which includes many islands in the Caribbean, and Mexico, as well as Alaska and Hawaii. The most suitable vessels for corporate programs are the mega-ships of Norwegian Cruise Line sailing primarily in Hawaii, and a few smaller ships (80-200 passengers) sailing in Alaska or on our American rivers. Most of the other US Flag vessels listed are not likely choices for professional groups due to the age and condition of these ships, but they are included for the sake of list-accuracy. (Click for list)
NCL’s Tax Q&A for US Ships
There are some benefits to using US ships vs. hotels as detailed in Norwegian Cruise Line’s comparison chart and their Q&A shown here.
IRS Reporting Requirements for Deductibilty of US Registered Ships
There are also a number of restrictions that must be met to qualify for the deduction
Comparison of US Registered Ships vs US Hotels
Consider this: only 50% of your food and entertainment expenses from a hotel program are tax deductible, whereas aboard a US ship 100% of the all-inclusive cruise fare is deductible (up to annual total of $2000 per meeting attendee). See ship vs. hotel comparison in the accompanying chart.
Tax Deductibility – Incentive programs
The IRS says that corporations can deduct the expenses of an incentive travel program; however the recipients must report the fair market value of the trip as income, and pay the appropriate tax, regardless of whether the trip takes place on a cruise or at a hotel/resort. More
Tax Deductibility – Pure Meetings
Corporations have been missing the boat when it comes to using a cruise for pure business meetings – and it’s often because of perceived tax obstacles. Landry & Kling suggests a radical solution: more
Tax Deductibility via Luxury Water Transportation
The 1986 Tax Reform Act still includes deductions for business travel using “Luxury Water Transportation”. This clause pre-dates air travel, and is now an underutilized option in the tax code, contained in IRS Publication 463
Discuss it with your tax advisor, or contact Landry & Kling and we’ll put you in touch with the attorney who has studied this issue extensively and made it the center of his practice for years. Incentive programs which typically have limited business content could easily deduct the cost of their cruise (up to $668 per person, per day) as “transportation to a land based meeting” which Landry & Kling can arrange in one of your ports of call. Discuss it with your tax advisor or lawyer, and decide for yourself.
|
|
|
