WEBVTT NOTE This file was generated by Descript 00:00:08.220 --> 00:00:11.840 Speaker: Welcome to Real Estate is Taxing, where we talk about all things real estate 00:00:11.870 --> 00:00:16.880 tax, and break down complex concepts into understandable, entertaining tax topics. 00:00:17.439 --> 00:00:21.259 My name is Natalie Kalady, I'm your host, and I am so excited 00:00:21.259 --> 00:00:22.670 that you've decided to join me. 00:00:23.268 --> 00:00:23.628 Microphone (Shure MV7)-1: Hello. 00:00:23.628 --> 00:00:24.408 Hello everyone. 00:00:24.408 --> 00:00:26.418 And welcome to this week's episode. 00:00:27.048 --> 00:00:32.028 The past several months, I have attended multiple conferences, 00:00:32.448 --> 00:00:36.768 tax conferences, real estate conferences, all across the country. 00:00:36.768 --> 00:00:38.028 Various venues. 00:00:38.568 --> 00:00:43.728 And it got me thinking about one of my favorite travel business topic. 00:00:43.818 --> 00:00:44.718 Overlaps. 00:00:45.198 --> 00:00:49.368 Which is when you can and when you can not. 00:00:49.848 --> 00:00:53.238 Deduct travel on a cruise ship. 00:00:53.728 --> 00:00:59.068 There's a lot of blogs and articles out there, but they're all fairly vague or 00:00:59.068 --> 00:01:04.378 they give very generalized steps and don't really talk about the feasibility of it. 00:01:04.858 --> 00:01:06.868 Or actual examples of it. 00:01:07.438 --> 00:01:13.738 I spent some time today searching for some court cases related to this topic. 00:01:14.338 --> 00:01:19.948 And there really aren't any specific to cruise ship travel as its own deduction. 00:01:19.948 --> 00:01:22.318 I couldn't find it as a focus point of a case. 00:01:22.978 --> 00:01:27.718 I did find some court cases that were semi-related we'll chat 00:01:27.718 --> 00:01:29.728 about one of those at the end. 00:01:30.238 --> 00:01:34.558 But outside of that, there's not a ton of guidance because it's pretty cut and dry. 00:01:35.698 --> 00:01:39.958 Microphone (Shure MV7)-3: The code section for this hasn't changed since 1982. 00:01:40.348 --> 00:01:44.038 So there haven't been any big updates or anything that really needed 00:01:44.038 --> 00:01:46.588 to be contested in recent years. 00:01:46.588 --> 00:01:48.418 So let's get into it. 00:01:48.618 --> 00:01:53.418 There are two different ways you can potentially write off 00:01:53.448 --> 00:01:56.418 a cruise as a business expense. 00:01:57.258 --> 00:02:04.098 Both of these are covered in code section 2 74 M and they are split between 00:02:04.608 --> 00:02:07.008 addressing conventions on cruise ships. 00:02:07.578 --> 00:02:11.928 And then a secondary category known as luxury water travel. 00:02:12.498 --> 00:02:15.168 So starting off with conventions on cruise ships. 00:02:15.858 --> 00:02:19.188 This is something that I hear about pretty often. 00:02:19.578 --> 00:02:24.858 I think anyone in the tax industry and real estate in a lot of industries, 00:02:25.398 --> 00:02:30.678 There are multiple cruises per year related to most industries 00:02:31.038 --> 00:02:32.748 that you can choose to attend. 00:02:33.168 --> 00:02:36.588 It will be in most cases, a seven day cruise. 00:02:36.618 --> 00:02:39.588 They will buy a room block the same way they would for a 00:02:39.588 --> 00:02:41.778 conference at a hotel or a resort. 00:02:42.348 --> 00:02:44.658 And then everything takes place on the cruise. 00:02:44.688 --> 00:02:48.048 There are however many hours of education. 00:02:48.268 --> 00:02:51.688 There are, different conference related events and networking. 00:02:51.688 --> 00:02:54.328 They're renting out general speaking areas. 00:02:54.748 --> 00:02:57.178 And attendees pay for the room. 00:02:57.538 --> 00:03:01.048 And the cruise fare, it's all typically rolled into one price. 00:03:01.708 --> 00:03:04.678 So these are marketed pretty frequently. 00:03:05.278 --> 00:03:09.928 And I have most often seen these marketed as a deductible business expense. 00:03:10.498 --> 00:03:14.458 But the truth of it is very rarely. 00:03:15.238 --> 00:03:19.678 Is a conference or an educational event on a cruise ship. 00:03:20.128 --> 00:03:23.248 Going to just easily be deductible. 00:03:23.998 --> 00:03:27.028 So let's start off with the first. 00:03:27.688 --> 00:03:28.888 Addressing of this. 00:03:29.588 --> 00:03:32.438 So let's look at how the code words, this. 00:03:33.428 --> 00:03:39.368 In the case of any individual who attends a convention, seminar, or other meeting, 00:03:39.368 --> 00:03:41.498 which is held on any cruise ship. 00:03:42.158 --> 00:03:47.768 No deduction shall be allowed under section 1 62 for expenses 00:03:47.798 --> 00:03:49.598 allocable to such meeting. 00:03:50.198 --> 00:03:54.008 Unless the taxpayer meets the requirements of paragraph five. 00:03:54.608 --> 00:04:00.308 And establishes that the meeting is directly related to the active conduct 00:04:00.368 --> 00:04:02.648 of his or her trade or business. 00:04:03.488 --> 00:04:06.068 So code section 1 62. 00:04:06.608 --> 00:04:11.408 Is the part of the tax code that explains ordinary and necessary business expenses. 00:04:12.108 --> 00:04:16.458 As a starting point, attending a convention seminar, et 00:04:16.458 --> 00:04:17.988 cetera, on a cruise ship. 00:04:18.558 --> 00:04:20.898 Is only a business deduction. 00:04:20.928 --> 00:04:26.118 If it directly relates to the taxpayers ongoing trader business, that makes sense. 00:04:26.988 --> 00:04:27.768 Next part. 00:04:28.328 --> 00:04:31.508 Again, it is directly related to the active conduct of 00:04:31.508 --> 00:04:32.798 his or her trader business. 00:04:33.308 --> 00:04:37.568 And that, and then it goes on to list two requirements. 00:04:38.268 --> 00:04:41.538 Microphone (Shure MV7)-4: Requirement number one, the cruise ship is a vessel 00:04:41.568 --> 00:04:44.178 that is registered in the United States. 00:04:44.778 --> 00:04:46.878 And requirement number two. 00:04:46.928 --> 00:04:51.188 All ports of call of that cruise ship are located in the United States or 00:04:51.188 --> 00:04:52.898 in possession of the United States. 00:04:53.578 --> 00:04:56.128 Microphone (Shure MV7)-5: So when we just start off with looking at 00:04:56.128 --> 00:05:02.128 these two initial requirements, I will let you guess how many cruise 00:05:02.128 --> 00:05:04.498 ships you think fit the bill? 00:05:05.068 --> 00:05:08.038 If we are looking at large commercial cruise lines. 00:05:08.408 --> 00:05:11.618 there's a thousand, 2000 people on board, maybe more. 00:05:12.008 --> 00:05:16.328 It normally is a week long, goes out to a few islands, go somewhere else. 00:05:16.718 --> 00:05:20.448 But we're not talking about like a river cruise or one of those little 00:05:20.448 --> 00:05:24.168 boats that'll fit like a hundred to 300 people, But one of those large 00:05:24.198 --> 00:05:27.378 commercial cruise ships, where there is a buffet and like a kid's club 00:05:27.378 --> 00:05:28.848 and water slides and all of that. 00:05:29.748 --> 00:05:32.718 One we're looking at that level of cruise ship. 00:05:33.318 --> 00:05:34.998 There is one. 00:05:35.388 --> 00:05:38.448 Singular ship that meets the requirement. 00:05:39.048 --> 00:05:43.878 Norwegian cruise lines, pride of America based in Hawaii is us registered. 00:05:44.388 --> 00:05:48.948 And it is the only large commercial cruise lines, cruise ship. 00:05:49.398 --> 00:05:50.838 That is us registered. 00:05:51.468 --> 00:05:55.758 Most cruise ships are registered to other countries for a variety of reasons. 00:05:56.148 --> 00:06:00.798 So just right off the bat, most cruise ships are not 00:06:00.798 --> 00:06:02.238 going to meet this requirement. 00:06:02.718 --> 00:06:07.728 The vast majority of cruises and cruise ships do not check the boxes. 00:06:08.148 --> 00:06:13.668 To be able to write off a convention or seminar that is held on a cruise ship. 00:06:14.658 --> 00:06:16.818 If it did, let's say that. 00:06:17.178 --> 00:06:21.978 Your industry is hosting a cruise that goes to Hawaii on that 00:06:21.978 --> 00:06:23.628 pride of America cruise ship. 00:06:24.048 --> 00:06:27.948 So it is us registered and it is only going to the United States. 00:06:28.453 --> 00:06:31.843 Microphone (Shure MV7)-6: then there is a $2,000 expense limit. 00:06:32.203 --> 00:06:37.963 For the total cost of that cruise with that seminar or convention. 00:06:38.413 --> 00:06:41.083 Total expense CAPTA, $2,000. 00:06:42.013 --> 00:06:46.723 In addition to that, if you happen to find a cruise that ticks all 00:06:46.723 --> 00:06:49.573 of the boxes and does qualify. 00:06:49.963 --> 00:06:54.883 To write off as a convention or an event that is held on a cruise ship. 00:06:55.543 --> 00:07:00.283 There's a whole bunch of reporting requirements that are required as well. 00:07:00.903 --> 00:07:04.083 for the tax year where you're claiming that deduction. 00:07:04.473 --> 00:07:06.273 You also need to include. 00:07:06.903 --> 00:07:08.283 A written statement. 00:07:08.523 --> 00:07:10.953 Signed by the individual attending the meeting. 00:07:10.953 --> 00:07:15.963 That includes information about the trip, the total days that excludes the 00:07:15.963 --> 00:07:17.793 transport to, and from the cruise ship. 00:07:18.303 --> 00:07:21.843 The number of hours each day of the trip where you devoted 00:07:21.843 --> 00:07:24.123 to only business activities. 00:07:24.663 --> 00:07:28.353 You need to include a program or schedule for all of the 00:07:28.353 --> 00:07:30.183 business activities or meetings. 00:07:30.663 --> 00:07:36.273 And any other information that might be required by the secretary. 00:07:36.723 --> 00:07:39.633 Additionally, you also need to include. 00:07:40.053 --> 00:07:44.883 A written statement signed by an officer of the organization or group 00:07:44.913 --> 00:07:47.763 sponsoring the meeting or the conference. 00:07:48.243 --> 00:07:49.803 And that has to include. 00:07:50.223 --> 00:07:55.233 A schedule of the business activities for each day, the number of hours, which 00:07:55.263 --> 00:07:57.453 you attended those business activity. 00:07:57.813 --> 00:08:02.433 And any other information as might be required by the secretary. 00:08:03.283 --> 00:08:08.083 so for the amount that we are fed and marketed cruises that are a tax 00:08:08.083 --> 00:08:12.343 deduction and attending these seminars on a cruise that are going to be a write 00:08:12.343 --> 00:08:15.373 off, they're likely not going to be. 00:08:15.823 --> 00:08:17.593 And in the rare event, they are. 00:08:18.073 --> 00:08:21.523 They're a huge pain in the ass to include everything you need to on your 00:08:21.523 --> 00:08:23.743 tax return to claim that deduction. 00:08:24.253 --> 00:08:27.403 So that's not a very likely option. 00:08:27.433 --> 00:08:28.873 It's not my favorite option. 00:08:29.383 --> 00:08:34.393 But that's what we have for the availability of writing off a 00:08:34.393 --> 00:08:39.253 convention or a seminar that is specifically held on a cruise ship. 00:08:39.953 --> 00:08:43.583 Microphone (Shure MV7)-5: The next option that I think is the far better choice. 00:08:44.243 --> 00:08:49.793 Is looking at your crews under the definition of luxury water travel. 00:08:50.633 --> 00:08:51.713 So at this means. 00:08:52.253 --> 00:08:58.493 Is instead of trying to attend an event or a conference, et cetera, on a cruise. 00:08:59.273 --> 00:09:05.303 Your crews is going to be your mode of transportation from your starting point. 00:09:05.693 --> 00:09:11.303 To the other city or location where the conference or seminar is being held. 00:09:11.783 --> 00:09:14.273 So the actual event is not on the ship. 00:09:14.303 --> 00:09:16.463 The ship is just how you are getting there. 00:09:16.883 --> 00:09:21.563 Instead of flying or driving or taking a train, et cetera. 00:09:22.163 --> 00:09:26.753 So luxury water travel has a whole set of rules of its own. 00:09:27.593 --> 00:09:28.913 As a starting point. 00:09:29.423 --> 00:09:34.673 There is a limit on the amount of deduction, but in this case, it is limited 00:09:34.673 --> 00:09:38.093 to twice the federal per diem rate. 00:09:38.393 --> 00:09:40.373 For similar travel. 00:09:40.733 --> 00:09:46.853 So for the prior tax year for 2023, it varies between quarters and months. 00:09:47.213 --> 00:09:53.003 So the highest federal per diem for the month of January of 2023. 00:09:53.333 --> 00:09:55.883 Was $564 per day. 00:09:56.213 --> 00:10:00.863 So for a cruise for luxury water travel, that would be double that. 00:10:01.283 --> 00:10:04.013 Which would be $1,128. 00:10:04.613 --> 00:10:09.983 So you would be able to write off up to $1,128 per day. 00:10:10.433 --> 00:10:12.323 Of luxury water travel. 00:10:13.053 --> 00:10:15.273 There's a few other nuances that come into play. 00:10:15.273 --> 00:10:15.933 Of course. 00:10:16.653 --> 00:10:19.383 If the cruise has separately stated meals. 00:10:19.863 --> 00:10:22.893 That's limited to your same standard, 50%. 00:10:23.353 --> 00:10:26.413 This isn't really common with cruises, but sometimes you can 00:10:26.443 --> 00:10:29.443 purchase like an additional meal package, something like that. 00:10:29.893 --> 00:10:32.173 And these limitations would come into play. 00:10:32.833 --> 00:10:36.943 So as you can see, there are two very different methods. 00:10:37.333 --> 00:10:44.353 For potentially being able to write off a cruise as a business expense. 00:10:45.253 --> 00:10:50.053 Now, something that I have heard people suggest is that if you are going to 00:10:50.053 --> 00:10:56.353 a seminar or a conference that is on a cruise, And if it goes to any 00:10:56.353 --> 00:10:58.513 ports that are outside of the U S. 00:10:59.323 --> 00:11:03.073 But it's a us registered ship, which is still a really, really unlikely. 00:11:03.673 --> 00:11:06.913 But they suggest you use this daily per diem instead. 00:11:07.333 --> 00:11:08.653 And that doesn't work. 00:11:09.163 --> 00:11:13.663 It specifically lists that there is an exception to this luxury 00:11:13.663 --> 00:11:15.883 travel daily per diem method. 00:11:16.333 --> 00:11:22.153 That you can not apply it to any expense that is applicable to a convention 00:11:22.183 --> 00:11:24.343 seminar or meeting on a cruise ship. 00:11:25.043 --> 00:11:25.883 Let's recap. 00:11:26.123 --> 00:11:27.263 Two different versions. 00:11:28.043 --> 00:11:30.803 Attending a seminar or conference on a cruise ship. 00:11:31.493 --> 00:11:33.413 Almost never going to be deductible. 00:11:33.993 --> 00:11:38.493 The ship has to be us registered and it can basically only go to us territories. 00:11:39.423 --> 00:11:43.383 If it happens to meet those two requirements, then the 00:11:43.383 --> 00:11:45.693 expenses kept a $2,000. 00:11:46.393 --> 00:11:49.873 Your other option of luxury water travel. 00:11:50.203 --> 00:11:54.343 Gives you a daily cap that is two times the federal per diem. 00:11:54.853 --> 00:11:57.523 But this would not apply to. 00:11:57.943 --> 00:12:01.273 A cruise where the conference or event was on board. 00:12:01.843 --> 00:12:04.753 This would only apply if you were using the ship. 00:12:05.173 --> 00:12:10.993 To get from point a to the final destination where the conference 00:12:10.993 --> 00:12:12.553 or seminar was being held. 00:12:13.253 --> 00:12:15.173 Microphone (Shure MV7)-7: It's also important to note. 00:12:15.563 --> 00:12:19.163 That in either of these cases, there might be. 00:12:19.463 --> 00:12:21.983 Some expense that is still deductible. 00:12:22.793 --> 00:12:25.883 If it is not tied into the direct cost of the cruise. 00:12:26.383 --> 00:12:32.083 For example, like in the circumstance where the conference or seminar is held 00:12:32.083 --> 00:12:38.563 on the cruise ship, even if that is not deductible your travel to the cruise port. 00:12:39.073 --> 00:12:41.593 And from it might still be deductible. 00:12:42.283 --> 00:12:47.923 If the organization structures it where the education is priced totally 00:12:47.923 --> 00:12:50.203 separate from the cruise fare. 00:12:50.203 --> 00:12:52.963 Those are two different things you pay for separately. 00:12:53.443 --> 00:12:58.543 The education might still be deductible as a standalone item. 00:12:59.053 --> 00:13:02.893 So there might be some nuance to it that does allow you to 00:13:02.893 --> 00:13:04.693 still write off some things. 00:13:05.173 --> 00:13:09.823 But it's not super easy to write off any kind of a conference that is 00:13:09.823 --> 00:13:12.313 being held on the actual cruise ship. 00:13:12.853 --> 00:13:16.423 I think the better option is to use a cruise ship, to 00:13:16.423 --> 00:13:18.463 get from point a to point B. 00:13:19.093 --> 00:13:22.063 There are pretty often repositioning cruises. 00:13:22.453 --> 00:13:25.603 Where Cruz starts in one city and ends in another city. 00:13:26.143 --> 00:13:29.023 Some of these are even through the Panama canal. 00:13:29.113 --> 00:13:33.433 So if you were going from Florida where you live to a conference in 00:13:33.433 --> 00:13:37.783 California, then you could take a cruise from one place to the other 00:13:37.833 --> 00:13:42.153 And potentially have that be a deductible expense to your business. 00:13:42.853 --> 00:13:47.233 As I mentioned at the beginning of the episode, I did try to find some 00:13:47.233 --> 00:13:52.063 court cases, some memos, some more interesting information related to. 00:13:52.483 --> 00:13:55.753 This specific event of attending. 00:13:56.233 --> 00:13:59.803 Conferences held on cruise ships and I couldn't find one. 00:14:00.253 --> 00:14:03.793 So if you've got a court case or something, you've come across, 00:14:03.883 --> 00:14:05.803 please feel free to send it to me. 00:14:06.493 --> 00:14:09.433 But one of the more interesting ones I did come across. 00:14:09.913 --> 00:14:13.273 Was a tax court memo from 1998. 00:14:13.703 --> 00:14:19.523 And this memo related to someone who did attend a seminar, held on a cruise ship. 00:14:19.973 --> 00:14:25.433 So in 1993, this taxpayer attended the second annual seminar at sea. 00:14:25.913 --> 00:14:29.243 and this was held a board of Royal princess cruise line. 00:14:29.783 --> 00:14:34.463 And this ship went from England and sailed to several different 00:14:34.763 --> 00:14:37.163 ports in Scandinavia and Russia. 00:14:37.793 --> 00:14:43.913 It was originally set up to be an educational seminar that was hosted 00:14:43.913 --> 00:14:47.153 by experts in the field of travel. 00:14:47.633 --> 00:14:53.003 So it was designed to help you learn about travel writing and travel 00:14:53.003 --> 00:14:56.693 photography by two leading experts. 00:14:57.533 --> 00:15:00.563 One of the two experts was unable to attend the cruise. 00:15:01.193 --> 00:15:06.323 And that really led to the overall amount of teaching and business purpose. 00:15:06.833 --> 00:15:08.063 Being pretty minimal. 00:15:08.543 --> 00:15:14.003 So this cruise was two weeks total and across the entirety of the cruise. 00:15:14.423 --> 00:15:19.283 There was only five and a half hours of any kind of formal instruction. 00:15:19.763 --> 00:15:24.713 And that was it for actual conference or seminar time on the cruise ship. 00:15:25.733 --> 00:15:30.023 So again, Wasn't likely deductible to start with because it was based 00:15:30.023 --> 00:15:33.803 on the premise of a conference or education on a cruise. 00:15:34.433 --> 00:15:35.363 But then even more. 00:15:35.363 --> 00:15:40.073 So the fact that there wasn't even two full days, like two full 00:15:40.073 --> 00:15:42.413 business purpose days of teaching. 00:15:42.773 --> 00:15:47.003 There was five and a half hours in total across the 14 days. 00:15:47.453 --> 00:15:50.333 Really hard argument to make that claim. 00:15:51.033 --> 00:15:53.433 The taxpayer originally indicated. 00:15:53.763 --> 00:15:57.753 That they signed up for the cruise for educational purposes. 00:15:57.753 --> 00:15:59.553 And that was the original intent. 00:16:00.063 --> 00:16:04.983 However, they then said that they changed their thoughts on it and 00:16:04.983 --> 00:16:09.633 really shifted their mindset from it being an educational cruise. 00:16:09.633 --> 00:16:12.123 And then when the one expert dropped out. 00:16:12.513 --> 00:16:18.003 They looked at it as a way to focus on their photography skills and use it as 00:16:18.003 --> 00:16:23.853 an opportunity to take over 900 photos between each of the ports they visited. 00:16:24.543 --> 00:16:28.803 But that still doesn't necessarily make that a deductible cruise. 00:16:29.613 --> 00:16:33.303 Microphone (Shure MV7)-8: And all in all the total cost of the cruise. 00:16:33.573 --> 00:16:37.623 Including meals, airfare, and all of the land tours that they 00:16:37.623 --> 00:16:41.043 took was just over $12,000. 00:16:41.743 --> 00:16:45.973 As a result of the cruise to prove that this was a business related 00:16:45.973 --> 00:16:48.103 activity and income generated item. 00:16:48.763 --> 00:16:53.803 The taxpayer did publish one article related to the cruise and the travel. 00:16:54.253 --> 00:16:58.333 For which they were compensated $150. 00:16:58.823 --> 00:17:03.023 So in this court case, the court noted that they were particularly influenced 00:17:03.053 --> 00:17:05.513 by the taxpayer's failure to consider. 00:17:05.873 --> 00:17:09.173 Whether the income they could generate from a particular trip. 00:17:09.593 --> 00:17:13.673 Would be an excess of the expenses related to the trip. 00:17:14.193 --> 00:17:17.703 They noted that in fact, the income producing potential of 00:17:17.703 --> 00:17:21.483 a trip didn't really seem to be of much concern to the taxpayer. 00:17:22.113 --> 00:17:25.803 They said it appears that the taxpayer would first decide on 00:17:25.803 --> 00:17:29.973 a destination and spend whatever amount they wanted to travel there. 00:17:30.543 --> 00:17:34.113 And they did not consider at all, if that would actually have any kind 00:17:34.113 --> 00:17:35.913 of income potential as a result. 00:17:36.333 --> 00:17:37.623 That was an afterthought. 00:17:38.133 --> 00:17:43.743 So not only was this cruise disallowed as a business expense. 00:17:44.343 --> 00:17:47.643 Most of their expenses were disallowed as a business expense. 00:17:48.093 --> 00:17:51.723 Because at the end of the day, they could not prove to the court. 00:17:52.053 --> 00:17:55.083 That they had a valid business motive where they were engaged 00:17:55.083 --> 00:17:56.733 in a for-profit activity. 00:17:57.633 --> 00:18:01.473 That was really the only case I could find on this, but I do 00:18:01.473 --> 00:18:04.743 think it ties into something else we're seeing more and more of. 00:18:05.253 --> 00:18:08.853 Which is social media influencers telling people. 00:18:09.273 --> 00:18:13.443 That you can write off your vacations, become a travel blogger, take your 00:18:13.443 --> 00:18:15.513 kids to Disney, write a blog about it. 00:18:15.963 --> 00:18:17.763 Eventually you'll monetize it. 00:18:17.763 --> 00:18:21.663 And then you'll be an Amazon affiliate and you'll make $4 this year. 00:18:22.053 --> 00:18:24.303 And, but you got to ride off all these trips. 00:18:25.023 --> 00:18:30.753 This court case is an excellent example of why you should not do that. 00:18:31.023 --> 00:18:36.003 There's pretty clear factors for when something is a business or a hobby. 00:18:36.393 --> 00:18:40.293 And it does get blurry when enjoyable things like traveling, start 00:18:40.383 --> 00:18:42.513 creating large sources of income. 00:18:43.023 --> 00:18:47.603 But unless you're already a regular journalist or someone who is being paid 00:18:47.603 --> 00:18:52.193 a significant amount for your monetized blog or your articles, et cetera. 00:18:52.913 --> 00:18:57.353 Assume it's a hobby until you can really show a profit motive. 00:18:57.813 --> 00:19:01.773 So just a little side note on another common overlap with 00:19:01.773 --> 00:19:04.233 travel and business, write offs. 00:19:04.933 --> 00:19:06.943 So that's what I have for you guys this week. 00:19:06.943 --> 00:19:09.373 I know it didn't specifically relate to real estate. 00:19:09.973 --> 00:19:14.143 But it is something that comes up pretty often for real estate conferences and 00:19:14.143 --> 00:19:16.883 tax conferences and every other industry. 00:19:17.363 --> 00:19:21.473 So hopefully it helps someone from making a mistake and spending money 00:19:21.473 --> 00:19:23.813 on something that might not pass. 00:19:23.813 --> 00:19:25.433 If it's ever looked at under audit. 00:19:26.333 --> 00:19:32.063 If you have a court case or an example or something you've encountered 00:19:32.423 --> 00:19:38.153 related to cruise ships, specific tax deductions, please reach 00:19:38.153 --> 00:19:39.593 out to me and share it with me. 00:19:39.593 --> 00:19:41.033 I would love to hear about it. 00:19:41.693 --> 00:19:44.873 I myself am a big cruise enthusiast. 00:19:44.903 --> 00:19:46.373 I am getting ready. 00:19:46.373 --> 00:19:47.573 This upcoming winter. 00:19:47.933 --> 00:19:49.613 To do a transatlantic cruise. 00:19:49.613 --> 00:19:51.263 I'm pretty excited about that. 00:19:51.743 --> 00:19:56.003 So this was one of those areas that I dove into head first when 00:19:56.003 --> 00:20:01.103 I got into tax, because obviously what I wanted to do was take every 00:20:01.103 --> 00:20:02.543 cruise I could and write it off. 00:20:03.113 --> 00:20:07.333 And it was incredibly disappointing to find out how unlikely that was. 00:20:07.333 --> 00:20:11.623 So I just wanted to share that disappointment with all of you guys. 00:20:12.133 --> 00:20:15.103 Not really, but kind of the purpose to share. 00:20:15.103 --> 00:20:18.853 It was so that you can avoid making a mistake and you now 00:20:18.853 --> 00:20:20.323 have the information you need. 00:20:20.803 --> 00:20:22.093 To decide if. 00:20:22.783 --> 00:20:27.403 A cruise or using a cruise ship to get to a conference or to a business event. 00:20:27.403 --> 00:20:31.723 I can result in a deduction for your business. 00:20:32.293 --> 00:20:33.643 So as always. 00:20:34.063 --> 00:20:37.753 If you guys found value in this episode, I would love if you would 00:20:37.753 --> 00:20:40.963 share it with someone, you know, someone else that you think would enjoy it. 00:20:41.383 --> 00:20:42.913 Leave a five star review. 00:20:42.913 --> 00:20:44.203 If you are so inclined. 00:20:44.683 --> 00:20:51.253 If you've got a good cruise ship tax-related court case or article 00:20:51.253 --> 00:20:52.873 or something, you've come across. 00:20:52.873 --> 00:20:53.443 Please. 00:20:53.443 --> 00:20:54.703 Please share it with me. 00:20:54.703 --> 00:20:56.593 I'll link below to my socials. 00:20:57.103 --> 00:21:01.063 And as always, I will talk to you guys next week. 00:21:01.384 --> 00:21:03.723 Mhm.