In article , Brian K
wrote:

On 3/18/2013 9:13 PM, Charles wrote:
In article ,
wrote:

Free cruise, heh? I've always wondered about those. Don't you have to pay
tax on that? Ordinary income? Taxed on the suggested retail price, not
heavily discounted price everyone else pays, right? How much do you figure
this free trip costs?

That would be if the cruise was won in a contest. A coworker won such a
contest and the cruise tax was based on brochure rate which meant he
ended up paying two thirds as much in taxes that he would have paid if
he had booked the cruise at the actual going fare. He came out a little
ahead. In Brian's case I think it is a gift. She can probably gift him
up to $11,000.


Carnival is picking up the entire tab because they've invited travel
agents and their guests on the cruise. I guess it's kind of a marketing
thing. The only thing we have to pay is excursions, and the usual on
board stuff.


In that case there would not be any taxes involved. Carnival won't be
sending a 1099 to the IRS. They are familiarizing sales agents with
their product.

--
Charles