Deducting Travel Expenses for Investment Club Members
Recently we were asked....
Several members of my investment club and I will be traveling to Hawaii later this fall for 5 days.  For three of these days, we will be attending a shareholders' meetings for one of our holdings, taking a tour of the facilities, and attending presentations by the senior managers.
Under current IRS rules, can we treat this as a Trip Primarily for Business and deduct expenses for the 3 days as business-related travel expenses?
IRS Publication #550 - Investment Income and Expenses is quite clear on this issue.  It states....

"Stockholders' meetings. You cannot deduct transportation and other expenses that you pay to attend stockholders' meetings of companies in which you have no interest other than owning stock. This is true even if your purpose in attending is to get information that would be useful in making further investments.

Investment-related seminar. You cannot deduct expenses for attending a convention, seminar, or similar meeting for investment purposes."

In other words, unless your club has a business interest in this company other than simply owning stock,  your club would likely fall under these rules for Investment Income and Expenses.

Thanks for using bivio!

Jerry Dressel
St.Louis, Missouri