Attending a Business Convention? Here’s What You Can (and Can’t) Deduct

Conventions and seminars can be a great way to sharpen your skills, network, and grow your business—but when it comes to tax deductions, not all events are created equal.

If you assume that every “business-related” seminar is automatically deductible, you’re not alone—but the IRS has some pretty specific rules based on where the event takes place. Here's what you need to know to stay compliant and keep your deductions intact.

Three Types of Events, Three Sets of Rules

Business events fall into three tax categories:

1. North American Conventions

These are the most straightforward. Events hel

d in the U.S., Canada, Mexico, Puerto Rico, and even places like Jamaica or the Dominican Republic usually count—as long as the seminar benefits your business.

North America is broadly defined by the IRS through treaties and agreements, so it’s more than just the U.S.

2. Foreign Conventions

If the event is outside North America, you’ll face tighter restrictions. The seminar must:

• Be directly related to your trade or business

• Have a legitimate reason for being held abroad (e.g., international attendees, unique content not available locally)
  

You’ll need to document your justification clearly in case of an audit.

3. Cruise Ship Conventions

These have the most limitations. To deduct:

• The ship must be U.S.-flagged

• All ports of call must be in the U.S. or U.S. territories

• You’re limited to $2,000 per year in deductions for cruise-related conventions

  
  

You’ll also need to submit statements of attendance (from both you and the event organizer) along with your tax return.

Don’t Skip the Paper Trail

No matter where the event is held, good documentation is key.

• Sole proprietors: Deduct your expenses directly on your return

• Corporations: Either pay expenses directly from the corporate account or submit an expense report for reimbursement

  
  

Either way, your records should include:

• Event agenda or program

• Proof of payment

• Notes on how the event relates to your business

  
  

What Can You Deduct?

If the event qualifies, you can typically deduct:

• The cost of the seminar or convention

• Travel expenses

• Lodging and meals (subject to IRS limits)

  
  

Just remember: the deductions only apply if the event meets the IRS guidelines—so doing a little homework ahead of time is well worth it.

Bottom Line

Attending a business convention can be a smart investment—but when it comes to taxes, location matters. Know the rules, keep good records, and you’ll be in a strong position to claim your deductions confidently.

We provide these articles as general information and not individualized tax advice.  They do not constitute a client relationship with you, and any information provided here should be applied at your own risk.