Over the years, business conferences have gotten bigger and bolder. No longer mere networking events, they have turned into carnivals, concerts and technologically immersive experiences – with the price tag to match. With valuable skill developing and relationship building opportunities, companies and entrepreneurs remain interested in sending their teams to conferences, but is there a tax benefit?

Currently, the IRS does allow you to deduct certain costs and expenses related to attending a work-related conference, convention or seminar but it must meet certain criteria. The main one being that it is actually explicitly related to your work. Attendance at these conferences has to be related to your business purpose and must benefit your business in relation to its primary income-driving purpose. An attorney might not have a legitimate business purpose for being at ComicCon, unless they are involved in trademarking or entertainment law.

Once you’ve established that your conference is relevant, you’ll be able to deduct expenses related to attending including the general cost of the conference and your travel. This can include airfare, mileage if driving or taxis as well as accommodation and 50% of meals. You’ll need to keep a detailed log of records for the IRS. If your trip is a combined business/pleasure meeting, you’ll only be able to deduct expenses related to the business portion of your trip.

Conferences attended outside North America (defined as the U.S. and all its territories, Canada, Mexico, and the Trust Territory of Pacific Islands) are subject to special rules and regulations. You’ll have to prove that you had a good enough reason to attend a conference overseas and debate whether or not there was a sufficient, similar conference in North America. Overseas conferences can still be deductible but generally, your trip will need to be less than one week and you’ll need to spend only 25% of your time or less on personal activities throughout your stay to be eligible for deduction.

Conferences can be an exciting prospect for employees looking to network and enjoy a change of scenery. They can also help with skill development, training, or marketing for your organization. From a tax standpoint, they can sometimes be tricky to deal with and require detailed records for deductions. At ClarkSilva, we are well-versed in helping businesses and entrepreneurs navigate difficult tax challenges and plan for the best tax outcome. If you have any questions about tax deductions for conferences, or any other tax issue, feel free to reach out to one of our team members today!