The conferees also are concerned that some taxpayers
may be claiming deductions under section 162 for
travel and other costs of attending a convention,
seminar, or similar meeting ("convention") at which
each convention participant is furnished individually
with video tapes of lectures, etc. on topics related to the
taxpayer's trade or business, to be viewed at the
convenience of the participant, and at which no other
significant business-related activities occur during the
time allotted for the convention.
In such situations,
the taxpayer does not participate in activities normally
conducted at a business-related convention, such as
participating in meetings, discussions, workshops,
lectures, or exhibits held during the day, and simply
views the tapes at his or her own convenience.
Because permitting deductions for travel, meal, or
entertainment costs associated with such minimal
business-related activities would allow taxpayers to
treat expenditures that essentially are for vacation,
recreation, or other personal purposes as business
expenses, the conferees wish to make clear that no
deduction is allowable under section 162 for travel or
related costs of attending such a convention.
This clarification does not disallow deductions for the
travel and other costs of attending a convention that
involves activities otherwise deductible under present
law which are related to the taxpayer's trade or business
merely because the convention utilizes video-taped or
televised materials where the participants must attend
a convention session in person to view the video-taped
materials, assuming that the generally applicable
requirements for deducting expenses of attending a
convention are satisfied.
Also, this clarification does
not disallow deductions for costs, other than travel,
meal, or entertainment expenses, of renting or using
business-related video tape materials.