My wife is a self-employed published author. She uses another self-employed individual as a virtual assistant. In appreciation for her assistant's efforts this year, she gifted her $300, which was essentially, a tip for services rendered. Three questions: 1. should that money be reported on the 1099 that my wife will issue for 2022?
2. is it reportable as income by the virtual assistant? 3. is it deductible as a business expense by my wife?
