Because per the IRS, intent is irrelevant when it comes to a foreign exchange student. IRS Publication 529 specifically states what can and can not be claimed for a foreign exchange student. It also clearly states where they are to be claimed, and it's on the SCH A, not the SCH C.
<a rel="nofollow" target="_blank" href="
https://www.irs.gov/publications/p526/ar02.html#en_US_2016_publink1000229664">https://www.irs.gov/pu...> identifies the basics of what can be deducted.
Then at <a rel="nofollow" target="_blank" href="
https://www.irs.gov/publications/p526/ar02.html#en_US_2016_publink1000229849">https://www.irs.gov/pu...> under "How to Report" it directs the use of SCH A, not SCH C.
Now if your business, which has nothing to do with foreign students and education, is sponsoring a student, then that's a whole different ballgame. But that won't work for a sole proprietorship or single member LLC reported on SCH C. It would need to be a partnership, S-Corp or C-Corp that reports on a 1065, 1120 or 1120-S.
