J.K. Lasser's Your Income Tax 2013: For Preparing Your 2012 Tax Return

20.13 Deducting Expenses of Business Conventions

Conventions and seminars at resort areas usually combine business with pleasure. Therefore, the IRS scrutinizes deductions claimed for attending a business convention where opportunities exist for vacationing. Especially questioned are trips where you are accompanied by your spouse and other members of your family. Deducting expenses of foreign conventions is subject to restrictions (20.15).

Generally, you may not deduct expenses of attending investment conventions and seminars (19.15). You also may not deduct the costs of business conventions or seminars where you merely receive a videotape of business lectures to be viewed at your convenience and no other business-related activities occur during the event.

In claiming a deduction for convention expenses, be prepared to show that your attendance at the convention benefitted your business. Cases and IRS rulings have upheld deductions for doctors, lawyers, and dentists attending professional conventions. One case allowed a deduction to a legal secretary for her costs at a secretaries’ convention. If you are a delegate to a business convention, make sure you prove you attended to serve primarily your own business interests, not those of the association. However, it is not necessary for you to show that the convention dealt specifically with your job. It is sufficient that attendance at the convention may advance or benefit your position. If you fail to prove business purpose, the IRS ...